Site for the Demonstration Centers are selected on the basis of population of the pump sets at the village level. Generally, in the dug wells of ‘Punchayat Bhawans’ or in the bore-wells wherever existing, these diesel operated efficient as well as inefficient pumping systems are installed. Demonstration centers are also installed at locations where energy; development agencies of various states have developed some site for displaying the non-conventional energy sources/equipment's, depending on the availability of space at these sites.

PCRA identifies the site of the demonstration centers and an agency of repute is engaged to install and operate the demonstration centers. The executing agencies procures, install and commission a set of the efficient pumping system conform to BIS – specifications and the inefficient pump system (complete in all respects and including foot valve, suction and discharge pipe, pumping set, diesel engine along with the proper base) at each of the locations. The inefficient pumping system is representative of locally available system in that area but of exactly same size/rating as the efficient system.

During the time of commissioning of the demonstration center wide publicity is given in nearby villages and a small function is arranged with the involvement of opinion makers like village Sarapanch, School Teachers, Gram Sewaks, Village Level Mechanics etc.

Both the efficient and inefficient systems are operated for 600 hrs. Each in an year to demonstrate the savings possible through the adoption of efficient system over the inefficient system. The representative of executing agency educates the farmers on the pumping system. A display board describing the advantages of efficient pumping system vis-à-vis the inefficient pumping is mounted at each site for the information of the farmers. A register is maintained at the demonstration centers where the visitors enter their observations like working of the system, how it has enhanced their awareness on efficient pumping system & on Oil Conservation along with their personal data (like name, village, education, farm holdings, pump sets ownership, diesel consumption etc.) The visitors are suggested to preferably put their signature or put thumb impression in case they are illiterate.

The executing agency maintains a proper logbook in which pump running hours, water flow rate, diesel and lube consumption data for both the systems are recorded. A PCRA inspection team visits the premises of camps on random basis to supervise and observe the performance of the camps. The total cost of installing the demonstration center and the operation expenses are borne by PCRA.