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Govt Plans To Restructure Rural Road Network To Boost Economy, Reduce Poverty: Report

The initiative, under the Pradhan Mantri Grameen Sadak Yojana, aims to connect scattered villages and habitations with populations of 300-400 in the plains and 100 in hilly, desert, and backward areas

In a bid to enhance economic activities, increase incomes, and alleviate poverty, the government is planning to restructure its rural road network, extending its reach to the most isolated regions of rural India. This information was disclosed by two individuals familiar with the plans, according to a report by Mint. The initiative, under the Pradhan Mantri Grameen Sadak Yojana (PMGSY), aims to connect scattered villages and habitations with populations of 300-400 in the plains and 100 in hilly, desert, and some tribal and backward areas, the report detailed.

Currently, the third phase of PMGSY sets the standard for establishing all-weather road connectivity to rural habitations with populations of 500 or more in the plains and 250 or more in hilly, desert, tribal, and designated backward districts. Now in its 24th year, the scheme may propose modifications in the upcoming Union Budget, set to be presented on July 23. The new eligibility requirements could either be implemented as a standalone program or integrated into the proposed PMGSY IV, one source told Mint.

The projected PMGSY-IV might receive a token allocation in this Budget, with full provisions starting next year when specific project alignments are established and contracts awarded, according to the sources.

Former social welfare minister of unified Jammu & Kashmir, Sakina Itoo, has expressed skepticism about the proposed expansion of the rural road network. Despite acknowledging its potential benefits, Itoo criticised the government for making bold claims but delivering minimal actual development on the ground, as reported.

In the interim Budget of February 2024, Rs 16,600 crore was allocated for PMGSY-III. This phase focuses on consolidating 125,000 km of through routes and major rural links, connecting habitations to Gramin Agricultural Markets (GrAMs), higher secondary schools, and hospitals. Additionally, the Road Connectivity Project for Left Wing Extremism Affected Areas (RCPLWEA) is underway. PMGSY-I and PMGSY-II are nearing completion, with over 99 per cent of the work finished.

Launched on December 25, 2000, PMGSY aims to provide all-weather road connectivity to eligible disconnected rural habitations. Since its inception, approximately Rs 3.8 lakh crore has been invested in the program, resulting in the construction of about 760,000 km of rural roads out of the 813,924 km sanctioned across the three PMGSY phases and the single RCPLWEA phase, according to the report.

The programme’s funding is shared between the central government and the states at a ratio of 60:40. For hill states, central funding can be as high as 90 per cent. By FY25, it is expected that nearly 50,000 additional kilometers will be completed, the report added.

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