Saturday, March 29, 2025
Chandigarh, August 14, 2025 – In a major setback to the Bhagwant Mann-led Punjab government, the Centre has cancelled road and bridge projects worth over ₹800 crore under the Pradhan Mantri Gram Sadak Yojana (PMGSY-III). The move comes after the state allegedly failed to issue tenders on time and delayed starting construction work.
The cancelled projects were aimed at upgrading 64 roads covering 628.48 km and building 38 bridges, each over 15 metres long. The total estimated cost was ₹828.87 crore, with work scheduled to start before March 31, 2025. This decision is a double blow for Punjab, already reeling from a severe cash crunch after the Centre withheld over ₹7,000 crore in Rural Development Fund (RDF) meant for repairing rural roads and infrastructure.
According to Public Works Department (PWD) officials, 59 of the projects were to use Full Depth Reclamation (FDR) technology, which only a handful of consultancy firms are equipped to handle. Multiple tendering attempts were made, but a suitable firm was only finalised on May 29, 2025, during the fourth attempt. Another project approved in March 2025—covering four roads and 35 bridges—is still at the tendering stage and was expected to begin this month.
The PWD has written to the Union Rural Development Ministry, warning that cancelling these projects just as work was set to begin would spark public resentment, particularly as many of the roads are in border districts like Amritsar, Gurdaspur, Pathankot, and Tarn Taran. Local MPs had strongly recommended urgent repairs in these areas.
Chief Minister Bhagwant Mann has also written to the Union Rural Development Minister, stressing the urgency of building the bridges and roads. “Under PMGSY-III, 38 bridges are to be constructed on roads that are already complete. Without these bridges, the roads will be rendered useless,” Mann said in his letter.
The Centre stated that Punjab had requested an extension beyond March 2025, but such extensions were only granted for projects where tenders had been issued and construction had begun on the ground. Projects that cannot progress or be completed by March 2026 will be terminated.
