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EquityWireRoad Scheme: Cabinet OKs increase in outlay for Gram Sadak Yojana to INR 839.77 bln
Road Scheme

Cabinet OKs increase in outlay for Gram Sadak Yojana to INR 839.77 bln

This story was originally published at 16:11 IST on 18 April 2026
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Informist, Saturday, Apr. 18, 2026

 

 --Cabinet OKs increase in outlay for Gram Sadak Yojana to INR 839.77 bln

 --Cabinet extends timeline of PM Gram Sadak Yojana 3 to Mar 2028 in plains

 --Cabinet extends timeline of PM Gram Sadak Yojana 3 to Mar 2029 in hills 

 

NEW DELHI – To boost the rural economy and trade by enhancing market access for agricultural and non-farm products, the Union Cabinet Saturday increased the outlay for Pradhan Mantri Gram Sadak Yojana-III to INR 839.77 billion from INR 802.50 billion. The original outlay of INR 802.50 billion was approved by the Cabinet in July 2019 to upgrade 125,000 kilometres of rural roads by March 2025. This initiative focussed on connecting habitations to gramin agricultural markets, schools, and hospitals, with a funding ratio of 60:40 between the Centre and states.

 

The Cabinet has approved the continuation of Pradhan Mantri Gram Sadak Yojana-III beyond March 2025. The timeline for completion of roads and bridges in the plains and roads in hilly areas will be extended till March 2028. The timeline for completion of bridges in hilly areas will be extended till March 2029.

 

The Cabinet said that works sanctioned before Mar. 31, 2025, but un-awarded till now may be taken up for tender or award. Long span bridges, with an estimated cost of INR 9.61 billion, pending for sanction but lying on the alignment of already sanctioned roads may be sanctioned and tendered or awarded, said the Cabinet.

 

The extension of the timeline will enable the full realisation of the scheme's intended socio-economic benefits by ensuring completion of targeted upgradation of rural roads, said the Cabinet. Further, improved connectivity will facilitate better access to education and healthcare institutions, said the Cabinet. This will ensure timely delivery of essential services, particularly in remote and underserved areas, it said.

 

The continued implementation of the scheme will also generate substantial employment opportunities, both directly through construction activities and indirectly by promoting rural enterprises and services, said the Cabinet. 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 said.  End

 

Reported by Surya Tripathi

Edited by Ashish Shirke

 

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