The Union Cabinet has extended the PMGSY-III rural roads scheme till March 2028 with a higher outlay, aiming to boost connectivity, improve market access, generate jobs, and strengthen rural economic growth across the country. | Photo Credit: K.V. RAMANA.

The Union Cabinet, chaired by the Prime Minister Narendra Modi, on Saturday gave its approval for the continuation of Pradhan Mantri Gram Sadak Yojana-III (PMGSY-III) beyond March 2025 upto March 2028.It 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 Rs 83,977 crore, according to an official release.

Key approvals and revised outlay

The Cabinet further, amongst other things, approved the following: Extension of timeline till March 2028 for completion of roads and bridges in plain areas and roads in hilly areas.Extension of timeline till March 2029 for completion of bridges in hilly areas.Works sanctioned before 31.03.2025 but un-awarded till now may be taken up for tender/award.Long Span Bridges (LSBs) (161 Nos. with estimated cost of Rs 961 crore) are pending for sanction, but lying on the alignment of already sanctioned roads may be sanctioned and tendered/awarded.Revision of outlay to Rs. 83,977 crore from the original outlay of Rs 80,250 crore.

Boost to rural economy and connectivity

The extension of the timeline of PMGSY-III will enable the full realisation of its intended socio-economic benefits by ensuring completion of the targeted upgradation of rural roads.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, the release noted. Improved connectivity will facilitate better access to education and healthcare institutions, ensuring the timely delivery of essential services, particularly in remote and underserved areas.

Employment generation and inclusive growth

The continued implementation will also generate substantial employment opportunities, both directly through construction activities and indirectly by promoting rural enterprises and services.Overall, the extension will contribute to inclusive and sustainable development by bridging the rural-urban divide and advancing the vision of Viksit Bharat 2047, the release concluded.

Published on April 18, 2026