Consequent on the recommendations of the second Administrative Reforms Commission, the Backward Region Grant Fund (BRGF) programme awaits some major restructuring in the 12th plan. Blocks are expected to replace the districts as primary units for redressing regional backwardness. This necessarily warrants objective identification of backward blocks based on composite criteria for targeted subvention. Relying on the joint distribution of a set of backwardness indicators, this paper offers an identification scheme that fulfills a few desirable welfare properties. The proposed scheme yields efficient and equitable results, also insightful policy implications.