Big jolt to Punjab govt as Centre scraps Rs 800-cr road projects under PMGSY

The move comes as a major setback to the cash-strapped Punjab government as Centre had already withheld grants of over Rs 7,000 crore under the Rural Development Fund (RDF), which is crucial for repairing infrastructure and roads in rural parts.

By  Jasleen Kaur Gulati August 14th 2025 11:27 AM -- Updated: August 14th 2025 11:41 AM

PTC News Desk: The Central government has scrapped road projects worth Rs 800 crore in Punjab under the Pradhan Mantri Gram Sadak Yojana-III due to delays by the state government in materialising the construction work. 


The move comes as a major setback to the cash=strapped Punjab government as centre had already withheld grants of over Rs 7,000 crore under the Rural Development Fund (RDF), which is crucial for repairing infrastructure and roads in rural parts.


According to a report by The Tribune, earlier the Centre had sanctioned projects to upgrade 64 roads spanning across 628.48 km and build 38 bridges (length exceeding 15 metres each). Punjab was to ensure the work on these projects, estimated at Rs 828.87 crore started before March 31.


Meanwhile, when questioned over the delay, state government officials argued that 59 of these works were supposed to be executed usinG Full Depth Reclamation (FDR) technology for which a very few consultancy firms had the expertise. “As per the sanction letter’s conditions, tenders for hiring a consultancy firm were invited several times, but a firm could be engaged only in the fourth attempt on May 29,” said a senior officer in the Punjab Public Works Department.


The officer further emphasised the scrapping these projects just before the onset would trigger public outrage as the condition of several roads is very poor. “Some of these roads are in the border belts of Amritsar, Gurdaspur, Pathankot and Tarn Taran, and were recommended by the MPs concerned for urgent repairs,” read a letter sent by the Punjab PWD to the Secretary, Union Ministry of Rural Development. 

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