New Delhi: The Cabinet on Saturday extended the validity of the third phase of the rural road
scheme, with a revised outlay of Rs 83,977 crore, seeking to consolidate through routes and
major rural links connecting habitations to farm markets, schools and hospitals.
The deadline to complete roads and bridges in plain areas and roads in hilly areas under the
Pradhan Mantri Gram Sadak Yojana-III (PMGSY-III) is now extended to March 2028, while
bridges in mountainous areas have to be built by March 2029, according to an official statement.
The PMGSY-III, with an initial outlay of Rs 80,250 crore, was to be completed by March 2025.
The extension of the timeline, the government said, will “significantly boost the rural economy
and trade by enhancing market access for agricultural and non-farm products, reducing
transportation time and costs, and thereby improving rural incomes”.
Of the revised outlay Rs 83,977 crore, the central government’s share would be Rs 54,848 crore
and states’ Rs 29,129 crore. The Centre typically bears 60% of the cost in most states and 90% in
north-eastern and hilly states.
Works sanctioned before March 31, 2025, but haven’t been awarded until now may be taken up
for tender or award, as per the official statement.
Improved connectivity will facilitate better access to education and healthcare institutions,
ensuring timely delivery of essential services, particularly in remote and underserved areas, it
said.

“Overall, the extension will contribute to inclusive and sustainable development by bridging the
rural-urban divide and advancing the vision of Viksit Bharat 2047,” it added.
The government had budgeted Rs 19,000 crore for the PMGSY this fiscal, up from Rs 11,000
crore a year earlier.
Since the scheme launch in late 2000, rural roads stretching over 7,94,236 km have been built
under various phases, connecting around 7,00,000 rural facilities. As many as 10,666 bridges
have been completed, information & broadcasting and railways minister Ashwini Vaishnaw said
in a briefing after the Cabinet meeting.

Already, the government had, in September 2024, announced a Rs 70,125-crore package (central
share of Rs 49,087.5 crore and states’ share of Rs 21,037.5 crore) for the fourth phase of the
PMGSY until 2028-29. Both phases run simultaneously.
Under the fourth phase, the goal is to build 62,500 km of rural roads in five years over 25,000
unconnected rural habitations.

(SOURCE: THE ECONOMIC TIMES)