Cabinet Extends PMGSY-III Till 2028, Raises Outlay to Rs 83,977 Crore

In a major push to rural connectivity, the Union Cabinet on April 18, 2026 approved the continuation of Pradhan Mantri Gram Sadak Yojana-III (PMGSY-III) beyond March 2025, extending the scheme up to March 2028. The programme focuses on strengthening through routes and major rural links that connect habitations with Gramin Agricultural Markets, higher secondary schools, and hospitals. The Cabinet also revised the scheme’s financial outlay to Rs 83,977 crore from the original Rs 80,250 crore.

As part of the decision, the government extended the deadline for completion of roads and bridges in plain areas, along with roads in hilly areas, till March 2028. For bridges in hilly regions, the completion timeline has been stretched further till March 2029. The Cabinet also cleared the way for works sanctioned before March 31, 2025 but still unawarded to be taken up for tendering and execution.

Another significant approval relates to 161 long-span bridges, estimated to cost Rs 961 crore, which are pending sanction but lie along alignments of already sanctioned roads. These bridges can now be sanctioned and tendered, helping remove crucial connectivity gaps in difficult terrains and improving the overall viability of rural road networks.

The government said the extension of PMGSY-III is expected to unlock the full socio-economic benefits of the scheme by ensuring that targeted rural road upgradation is completed. Better road infrastructure is likely to improve access to markets for agricultural and non-farm products, reduce travel time and transport costs, and strengthen rural incomes. Improved connectivity is also expected to enhance access to healthcare and education, especially in remote and underserved areas.

According to the official release, the continued implementation of PMGSY-III will also generate employment through construction activity and support the growth of rural enterprises and services. The Cabinet said the move would contribute to inclusive and sustainable development while helping bridge the rural-urban divide in line with the broader vision of Viksit Bharat 2047.

Reference:

https://www.pib.gov.in/PressReleasePage.aspx?PRID=2253247&reg=3&lang=1