Centre Enhances Funds for Rural Road Scheme

Ministry of Rural Development has made an enhanced allocation of Rs 1,650 crore under Pradhan Mantri Gram Sadak Yojana.

Published: 08th April 2016 06:56 AM  |   Last Updated: 08th April 2016 07:06 AM   |  A+A-

BHUBANESWAR: The Ministry of Rural Development (MoRD) has made an enhanced allocation of Rs 1,650 crore under Pradhan Mantri Gram Sadak Yojana (PMGSY) for the current financial year as against Rs 1,257 crore provided in the last fiscal.

This is an indicative annual allocation for the State taking into consideration the value of road projects in hand as well as unspent balance available with the State.

"However, the Central allocation of funds will be subject to revision keeping in view the pace of expenditure and institutional capacity of State for utilisation,' said a communication from the MoRD to Rural Development Department on Thursday.

Consequent to higher devolution of funds to States as per the recommendations of 14th Finance Commission and recommendation of the sub-group of Chief Ministers on Rationalisation of Centrally Sponsored Schemes, the Centre has changed the fund sharing pattern of PMGSY in the ratio of 60:40 between the Centre and State.

Accordingly, the State Government has to make a provision of Rs 1100 crore as its share. The total quantum of fund for the flagship rural infrastructure programme will be Rs 2,750 crore for the current fiscal.

However, the State Government in its annual budget for 2016-17 has made a provision of Rs 2,300 crore for road projects under PMGSY. The State has planned to construct 3200 Kms of roads in 2016-17.

Meanwhile, the State Government has constructed 9,278 roads with a length of 35,861 kms of total sanctioned length of 45,189 kms with an expenditure of Rs 14,53.23 crore.

Under this programme, 14,785 villages have been provided all-weather connectivity.

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