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.

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.

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