Welcoming the announcement of package for sarpanches by Chief Minister N Chandrababu Naidu earlier in the State Assembly, president of A P Sarpanches' Association Y V B Rajendra Prasad told reporters here that their proposed "mass self-immolation" in front of the Chief Minister's residence on Thursday has been called off.

After prolonged talks with representatives of the association, Naidu had announced the package in state assembly amidst thumping of desks from treasury benches.

Naidu announced a monthly honorarium of Rs 1,000 for sarpanches of major panchayats and Rs 600 for those of minor panchayats as against their demand of Rs 1,500 for all panchayats.

While 16 subjects mentioned in the panchayat raj act including agriculture, animal husbandry, rural roads, minor irrigation tanks, market yards, socialforestry and small-scale industries, were being transferred to local bodies immediately, a high-level committee headed by chief secretary would be constituted to examine demand for devolution of powers pertaining to the remaining 13 subjects, Naidu said.

The sarpanches' association would also be recognised as a union and all protocol privileges would be accorded to them, the Chief Minister said.