Punjab’s Roadblock: Centre Cancels Rs 800 Crore PMGSY Projects
The Centre has dealt a significant blow to Punjab’s infrastructure development, cancelling over Rs 800 crore worth of road projects under the Pradhan Mantri Gram Sadak Yojana-III (PMGSY-III). The decision, announced on August 13, 2025, cites substantial delays in project implementation.
Punjab attributed these delays to limitations in technical expertise, a claim now under scrutiny by the central government. The state government faces a severe financial crunch following the cancellation of these crucial rural connectivity projects.
Chief Minister Bhagwant Mann has reportedly appealed directly to the Centre for the reinstatement of these projects, emphasizing their importance for rural development and economic growth in the state. He highlighted the potential impact on employment and the overall well-being of rural communities.
The withheld funds further exacerbate Punjab’s existing fiscal challenges. This development underscores the need for robust project management and timely execution of centrally-sponsored schemes, particularly in states facing capacity constraints. The incident raises serious questions about effective resource allocation and the potential impact on rural infrastructure development across the nation.