Cabinet Extends PMGSY-III Till 2028 Raises Outlay To Rs 839.77 bn

23 Apr 2026 CW Team

The scheme will continue to concentrate on upgrading rural road networks, including through routes and major links that connect villages to Gramin Agricultural Markets, higher secondary schools and hospitals. Timelines for project execution have been extended so that roads and bridges in plain areas, and roads in hilly regions, are to be completed by March 2028. Bridges in hilly areas have been assigned a later completion date of March 2029.

Projects that were sanctioned before March 31, 2025 but not yet awarded will be eligible for tendering and execution under the extended framework. The Cabinet also approved taking up 161 long-span bridges, estimated at Rs 961 crore (Rs 9.61 bn), where those structures fall along already sanctioned road alignments. The extended window is intended to allow these pending works to proceed to award and construction.

The financial allocation for the scheme has been increased from an earlier Rs 80,250 crore (Rs 802.5 bn) to the revised figure. Officials indicated that the extension and the higher outlay are designed to ensure completion of targeted upgrades and to unlock the scheme's socio-economic benefits. Improved connectivity is expected to enhance access to markets, reduce transportation time and costs and support higher rural incomes.

The government noted that better road infrastructure will improve access to education and healthcare services in remote areas while also generating employment through construction and allied rural economic activities. The extended deadlines are intended to provide implementing agencies with greater certainty to complete complex works in challenging terrain. Administrative guidelines and tendering processes will be adjusted to reflect the new timelines.

"Join industry leaders at RAHSTA Expo, India's premier platform for roads, highways and traffic infrastructure. Register now to explore innovations, network with experts and shape the future of mobility."

The Union Cabinet, chaired by the prime minister, approved an extension of the Pradhan Mantri Gram Sadak Yojana-III (PMGSY-III) until March 2028 and revised the scheme's financial outlay to Rs 83,977 crore (Rs 839.77 bn). The programme had been scheduled to end in March 2025. The decision was notified in an official release. The scheme will continue to concentrate on upgrading rural road networks, including through routes and major links that connect villages to Gramin Agricultural Markets, higher secondary schools and hospitals. Timelines for project execution have been extended so that roads and bridges in plain areas, and roads in hilly regions, are to be completed by March 2028. Bridges in hilly areas have been assigned a later completion date of March 2029. Projects that were sanctioned before March 31, 2025 but not yet awarded will be eligible for tendering and execution under the extended framework. The Cabinet also approved taking up 161 long-span bridges, estimated at Rs 961 crore (Rs 9.61 bn), where those structures fall along already sanctioned road alignments. The extended window is intended to allow these pending works to proceed to award and construction. The financial allocation for the scheme has been increased from an earlier Rs 80,250 crore (Rs 802.5 bn) to the revised figure. Officials indicated that the extension and the higher outlay are designed to ensure completion of targeted upgrades and to unlock the scheme's socio-economic benefits. Improved connectivity is expected to enhance access to markets, reduce transportation time and costs and support higher rural incomes. The government noted that better road infrastructure will improve access to education and healthcare services in remote areas while also generating employment through construction and allied rural economic activities. The extended deadlines are intended to provide implementing agencies with greater certainty to complete complex works in challenging terrain. Administrative guidelines and tendering processes will be adjusted to reflect the new timelines.

Resources

26 Jun 2026

G R Infraprojects Founder Vinod Agarwal Passes Away

Vinod Kumar Agarwal, Founder and Promoter of G R Infraprojects, has passed away. He had been associated with the company since its inception in 1995. His vision, determination and entrepreneurial acumen laid the foundation for the company and helped shape its growth into a leading name in India’s infrastructure sector.Agarwal served as Managing Director from 2008 to 2021 and later as Chairman and Whole-time Director from 2021 to 2025. He stepped down from the office of Director on 10 November 2025. During his leadership tenure, the company moved through significant phases of growth, operatio..

Infrastructure Energy

25 Jun 2026

Centre Prioritising Energy Security With Coal Gasification

Union minister for Coal and Mines G Kishan Reddy said the Centre is prioritising energy security through a strategic shift to coal gasification and has announced incentives totalling Rs 460 billion (bn) to support the effort. He said more than 35 companies will start coal gasification activities in India within two months and that the government is encouraging firms that bring technology to close the domestic technology gap. The minister described the initiative as aimed at reducing import dependence and developing indigenous capacity. India has the fifth-largest coal reserve in the world, and..

Infrastructure Urban

25 Jun 2026

BHEL and Coal India Invest Rs 250 bn in Odisha Gasification

Bharat Heavy Electricals (BHEL) and Coal India (CIL) are jointly investing Rs 250 billion in a coal gasification project in Odisha, with the Prime Minister laying the foundation stone in Jharsuguda. Union Coal and Mines Minister G Kishan Reddy described the initiative as a transformative shift in coal utilisation that will open industrial avenues for the state. The project moves coal beyond conventional power generation to industrial feedstocks. Coal gasification will convert coal into synthesis gas, a versatile feedstock for chemicals, fertilisers and synthetic fuels, and the technology is ex..