Cabinet Extends PMGSY-III Till 2028; Rs. 83,977 Crore Outlay Approved to Boost Rural Connectivity.
New Delhi:
The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the continuation of the Pradhan Mantri Gram Sadak Yojana-III (PMGSY-III) beyond March 2025, extending its implementation till March 2028 with a revised outlay of Rs. 83,977 crore.
The decision aims to ensure the completion of critical rural road infrastructure projects and enhance connectivity across villages, particularly linking habitations to Gramin Agricultural Markets (GrAMs), higher secondary schools, and healthcare institutions.
Key Decisions Approved by the Cabinet
The Cabinet approved several significant measures to accelerate the pace of rural infrastructure development:
Extension of the project timeline till March 2028 for completion of roads and bridges in plain areas, and roads in hilly regions.
Extension till March 2029 for completion of bridges in hilly areas.
Permission to tender and award works that were sanctioned before March 31, 2025, but remain un-awarded.
Approval for 161 Long Span Bridges (LSBs), estimated at Rs. 961 crore, pending sanction but aligned with already approved roads.
Revision of the scheme’s total outlay from Rs. 80,250 crore to Rs. 83,977 crore.
Boost to Rural Economy and Services
The extension of PMGSY-III is expected to play a crucial role in strengthening rural infrastructure and driving economic growth. By improving road connectivity, the scheme will:
Enhance market access for agricultural and non-farm products
Reduce transportation time and costs
Improve rural incomes and livelihoods
Facilitate better access to education and healthcare services in remote areas
Officials noted that improved connectivity would also ensure timely delivery of essential services and promote balanced regional development.
Employment and Inclusive Growth
The continued implementation of the scheme is likely to generate significant employment opportunities, both directly through construction activities and indirectly by encouraging rural enterprises and service sectors.
The move aligns with the government’s broader vision of achieving inclusive and sustainable development, while bridging the rural-urban divide under the Viksit Bharat 2047 roadmap.
With this extension, the government aims to fully realize the socio-economic benefits of PMGSY-III and ensure that rural India remains an ntegral part of the country’s growth story.
