Centre scraps ₹800-cr PMGSY projects in Punjab

In a significant setback for Punjab’s rural infrastructure plans, the central government has scrapped Pradhan Mantri Gram Sadak Yojana (PMGSY) projects worth ₹800 crore in the state, citing repeated delays in execution. The move is expected to affect the construction and upgrading of hundreds of kilometers of rural roads, which were aimed at improving connectivity for remote villages.

According to officials, the projects—approved under various phases of PMGSY—had faced slow progress for several years. While the funds were sanctioned, the implementing agencies in Punjab failed to meet the stipulated timelines, leading to multiple extensions. Despite repeated reminders and review meetings, the pace of work remained far below expectations, prompting the Centre to withdraw the projects altogether.

Sources in the Ministry of Rural Development stated that the decision was not taken lightly, as the scheme plays a crucial role in providing all-weather road connectivity to rural areas. However, the ministry has emphasized that timely completion is essential to ensure both cost-effectiveness and public benefit.

The cancellation comes as a blow to many villages that were set to benefit from improved access to markets, schools, and healthcare facilities. In several cases, partial work had already begun, but without further funding, those stretches may remain incomplete unless the state steps in with its own resources.

Officials in Punjab have expressed disappointment over the decision, blaming procedural delays, land acquisition hurdles, and shortage of contractors for the slow pace. Some state officials have also pointed to the pandemic years as a major factor that disrupted construction schedules.

Opposition parties have seized the opportunity to criticize the state government, accusing it of inefficiency and failure to protect the state’s development interests. “This is a massive loss for Punjab’s rural economy. Farmers and small traders will be the worst hit, as road connectivity is the lifeline of rural commerce,” said a senior opposition leader.

Infrastructure experts note that beyond the political blame game, the bigger concern is the impact on rural livelihoods. Poor road connectivity forces villagers to spend more time and money on transport, reduces access to essential services, and limits opportunities for economic growth. They warn that if such cancellations become frequent, it could discourage future central investments in the state.

The Centre has indicated that fresh proposals could be considered in the future, but only if the state demonstrates stronger execution capabilities and adherence to deadlines. In the meantime, Punjab may have to re-prioritize its rural development budget to salvage critical road projects that were part of the cancelled package.

For residents in the affected areas, the cancellation has sparked frustration and uncertainty. Farmers who were counting on easier access to mandis, students who needed better routes to schools, and patients who relied on faster access to district hospitals now face longer journeys on poorly maintained rural tracks.

The ₹800-crore blow serves as a reminder that infrastructure funding is only as effective as the ability to turn plans into completed projects—and in Punjab’s case, delays have proven costly.