For completion of bridges in hilly area, the revised timeline will be till March 2029 | Photo Credit: -

Union Cabinet on Saturday approved continuation of third phase of Pradhan Mantri Gram Sadak Yojana (PMGSY-III) beyond March 2025 up to March 2028.

“The revised outlay of the scheme will be ₹83,977 crore (as against ₹80,250 crore),” an official statement said. The scheme involves 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 will be ₹83,977 crore.

The statement added that under the third phase, there will be extension of timeline till March 2028 for completion of roads and bridges in plain areas and roads in hilly areas. However, for completion of bridges in hilly area, the revised timeline will be till March 2029. Works sanctioned before March 31, 2025, but un-awarded till now may be taken up for tender/award.

“The extension of the timeline of PMGSY-III will enable the full realisation of its intended socio-economic benefits by ensuring completion of targeted upgradation of rural roads,” the statement said. Further, it will significantly boost the rural economy and trade by enhancing market access for agricultural and non-farm products, reducing transportation time and costs, and thereby improving rural incomes. Improved connectivity will facilitate better access to education and healthcare institutions, ensuring timely delivery of essential services, particularly in remote and underserved areas, it said.

Railway projects

Meanwhile, the Cabinet also approved two multitracking projects covering 15 districts across the States of Uttar Pradesh and Andhra Pradesh, increasing the existing network of the Railways by about 601 km The total estimated cost of the projects is ₹24,815 crore to be completed up to 2030-31, another official statement said.

Under the first project, there is proposal to lay 3rd and 4th line between Ghaziabad and Sitapur in Uttar Pradesh with a total length of 403 km. This section is an existing double line one forming a key part of Delhi- Guwahati High Density Network The existing line capacity utilisation of the section is up to 168 per cent and is projected to be up to 207 per cent in case the project is not taken up. The project route passes through major industrial centres — Ghaziabad (machinery, electronics, pharmaceuticals), Moradabad (brassware and handicrafts), Bareilly (furniture, textiles, engineering), Shahjahanpur (carpets and cement-related industries) and Roza (thermal power plant).

Under the second project, the proposal is to lay 3rd and 4th line between Rajahmundry (Nidadavolu) — Visakhapatnam (Duvvada). This section forms part of the Howrah — Chennai High Density Network (HDN). The project traverses through East Godavari, Konaseema, Kakinada, Anakapalle and Vishakapatnam districts of Andhra Pradesh. The line capacity utilisation of the section has already reached up to 130 per cent, leading to frequent congestion and operational delays. The line capacity is expected to increase further due to proposed expansion of ports and industries in the region. The proposed section will also boost tourism by improving access to key destinations such as Annavaram, Antarvedi and Draksharamam etc.

DA/DR hiked

In a separate instance, after a long gap, Dearness Allowance (DA) and Dearness Relief (DR) for Central government serving employees and retired ones was respectively raised by 2 per cent. According to a decision by the Union Cabinet, DA/DR will now be 60 per cent of basic pay or basic pension.

New rates will be effective from January 1, 2026, and will benefit about 50.46 lakh Central Government employees and 68.27 lakh pensioners.The combined impact on the exchequer on account of increase in both Dearness Allowance and Dearness Relief would be over ₹6,700 crore annually.

Published on April 18, 2026