Rural & Rail Connectivity Boost: Cabinet Extends PMGSY-III with ₹83,977 Crore Outlay and Sanctions New Railway Lines

Written by: Team Angel OneUpdated on: 20 Apr 2026, 4:18 pm IST
The government extends PMGSY-III till March 2028 with ₹83,977 crore outlay and approves major railway projects to boost connectivity.
Rural & Rail Connectivity Boost
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The Indian government has announced the extension of the Pradhan Mantri Gram Sadak Yojana (PMGSY-III) until March 2028, with a revised outlay of ₹83,977 crore.  

This decision aims to enhance rural road connectivity, particularly to agricultural markets, schools, and healthcare facilities.  

Additionally, the Cabinet has approved significant railway expansion projects to improve connectivity and capacity. 

Extension of PMGSY-III 

The Cabinet's decision to extend PMGSY-III focuses on upgrading rural road infrastructure. The scheme will prioritise connectivity to essential services such as agricultural markets, educational institutions, and healthcare facilities.  

The timeline for completing road and bridge works in plain areas is set for March 2028, while bridge works in hilly regions are expected by March 2029.  

Union I&B Minister Ashwini Vaishnaw highlighted that this initiative would bolster rural economies, improve access to services, and create employment opportunities. 

Railway Expansion Projects 

In addition to extending PMGSY-III, the Cabinet has approved two major railway expansion projects. The first project involves constructing the third and fourth railway lines between Ghaziabad and Sitapur, covering 403 km at an estimated cost of ₹14,926 crore.  

This project is part of the Delhi–Guwahati high-density network and is expected to be completed in 4 years. It will include 6 new stations across Uttar Pradesh, facilitating faster movement of passenger and freight trains and supporting industrial hubs along the corridor. 

Read More: Government Eyes to Launch Mobile PLI 2.0 with Over $5 Billion Outlay by May! 

Enhancing the East Coast Corridor 

The second railway project approved by the Cabinet is the construction of the third and fourth railway lines between Rajahmundry (Nidadavolu) and Visakhapatnam (Duvvada), with an estimated cost of ₹9,889 crore.  

This project aims to enhance capacity on the east coast corridor, improving efficiency in freight and passenger movement and reducing congestion on one of India's critical rail routes. 

Conclusion 

The government's decision to extend PMGSY-III and approve key railway projects underscores its commitment to improving infrastructure and connectivity. With a combined estimated outlay of over ₹1.28 trillion, these initiatives are set to enhance rural connectivity and boost economic activity through improved transportation networks. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing. 

Published on: Apr 20, 2026, 10:47 AM IST

Team Angel One

Team Angel One is a group of experienced financial writers that deliver insightful articles on the stock market, IPO, economy, personal finance, commodities and related categories.

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