The Union Cabinet chaired by the Prime Minister approved the continuation of the Pradhan Mantri Gram Sadak Yojana-III beyond March 2025 up to March 2028. The extension covers consolidation of through routes and major rural links connecting habitations to Gramin Agricultural Markets (GrAMs), higher secondary schools and hospitals. The revised outlay of the scheme has been set at Rs 839.77 billion (bn), up from the original Rs 802.5 billion (bn).

The Cabinet approved an extension of the timeline to March 2028 for completion of roads and bridges in plain areas and for roads in hilly areas, and a further extension to March 2029 for completion of bridges in hilly areas. Works sanctioned before 31 March 2025 but not yet awarded may be taken up for tender or award. The decision allows sanctioning and tendering of Long Span Bridges (LSBs), including 161 long span bridges with an estimated cost of Rs 9.61 billion (bn) pending sanction and lying on the alignment of already sanctioned roads.

The extension is intended to enable full realisation of the scheme's socio-economic benefits by ensuring completion of targeted upgradation of rural roads. Officials indicated that enhanced road connectivity will boost the rural economy and trade by improving market access for agricultural and non-farm products, reducing transportation time and costs and improving rural incomes. Improved links to GrAMs, schools and hospitals are expected to facilitate better access to education and healthcare services in remote and underserved areas.

Continued implementation is anticipated to generate substantial employment opportunities both directly through construction activity and indirectly by promoting rural enterprises and services. The Cabinet indicated that the move will contribute to inclusive and sustainable development by bridging the rural-urban divide and advancing the vision of Viksit Bharat 2047. Administrative provisions will allow works sanctioned prior to 31 March 2025 to be tendered so as to expedite completion.