Chandigarh: The Centre has cancelled road and bridge projects worth over ₹800 crore sanctioned to Punjab under the Pradhan Mantri Gram Sadak Yojana (PMGSY-III), citing delays in tendering and commencement of construction. The move comes as a second setback for the financially strained state government, which is already reeling from the Centre’s earlier decision to withhold over ₹7,000 crore in Rural Development Fund (RDF) grants, a key source for rural infrastructure and road repairs.
According to information accessed by TSG, the PMGSY-III allocation for Punjab included the upgradation of 64 roads spanning 628.48 km and the construction of 38 bridges (each over 15 metres in length), with a total project cost of ₹828.87 crore. The state was required to initiate work on these projects before March 31.
However, officials in the Punjab Public Works Department (PWD) said that 59 of these works were designed to use Full Depth Reclamation (FDR) technology, for which only a handful of consultancy firms in India possess the necessary expertise. “As per the sanction letter’s conditions, tenders for hiring a consultancy firm were floated multiple times, but we could finalise one only on May 29, after the fourth attempt,” a senior PWD officer explained. Another package, comprising four roads and 35 bridges sanctioned in March 2025, is still at the tendering stage, with work scheduled to commence this month.
PWD officials warned that cancelling these projects at this juncture could provoke public anger, especially in areas where road conditions are dire. “Several of these roads are in the border districts of Amritsar, Gurdaspur, Pathankot, and Tarn Taran, and were identified by local MPs for urgent repair,” read a letter from the Punjab PWD to the Secretary, Union Ministry of Rural Development.
Chief Minister Bhagwant Mann has also written to Union Rural Development Minister Shivraj Singh Chouhan, underscoring the critical importance of proceeding with the work. “The 38 bridges are to be built on roads already completed under PMGSY-III… Without these bridges, the roads will be of little use,” Mann stressed.
In its response to Punjab’s request for an extension beyond March 2025, the Union Ministry of Rural Development said the deadline had been extended to March 31, 2026, but only for works that had already been tendered and where construction had commenced on the ground. “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,” the ministry stated.
The development underscores widening tensions between the state and the Centre over rural infrastructure funding, with Punjab warning that stalled projects could worsen road conditions in strategically sensitive and economically vital regions.
