Work ‘delayed’, Centre scraps Rs 800-cr PMGSY projects in Punjab

The Centre has scrapped road projects worth over Rs 800 crore allotted to Punjab under the Pradhan Mantri Gram Sadak Yojana-III due to “delays” by the state government in floating tenders and starting construction work.

The move has dealt a double blow to the cash-strapped Punjab Government as the 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.

The Tribune has learnt that under the PMGSY-III, the Centre had initially sanctioned projects to upgrade 64 roads (measuring 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.

Questioned over the delay, state government officials argued that 59 of these works were 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. He said another project comprising four roads and 35 bridges, which was sanctioned in March 2025, was in the tendering stage and the work was scheduled to start this month.

The officer said scrapping these projects when the work was about to begin would cause public outrage as the condition of several of these roads was 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.

Chief Minister Bhagwant Mann, too, has shot off a letter to Union Rural Development Minister Shivraj Singh Chouhan, emphasising that allowing the construction of these bridges and repair of roads was of “utmost importance”. “The 38 bridges are to be built on roads already completed under the PMGSY-III… Without these bridges, the roads will be of little use,” said Mann.

In its communication to Punjab, the Union Ministry of Rural Development said it had received the state’s request for extension of deadline for projects beyond March 2025. However, the deadline had been extended till March 31, 2026, for only those works that had already been tendered and construction had started on the ground, it said. “Works which have started on the ground but are not feasible to continue further shall be foreclosed. Even works that have started on the ground but are unlikely to be completed on or before March 2026 may be foreclosed,” stated the Centre’s letter.