Pradhan Mantri Gram Sadak Yojana Current Affairs

Government inks $250 Million Loan Agreement with ADB to Improve Rural Connectivity in 5 States

The Union Government has inked $250 Million Loan Agreement with Asian Development Bank (ADB) to Improve Rural Connectivity in 5 States viz. Assam, Chhattisgarh, Madhya Pradesh, Odisha and West Bengal under Pradhan Mantri Gram Sadak Yojana (PMGSY). The loan proceeds will be used to finance the construction of 6,254 kilometres all-weather rural roads in these 5 States under the PMGS).

Key Facts

It is first tranche Loan of the $500 million Second Rural Connectivity Investment Program for India approved by the ADB Board in December 2017. The program is aimed to improve rural connectivity, facilitate safer and more efficient access to livelihood and socio-economic opportunities for rural communities through improvements to about 12,000 kms Rural Roads across 5 States.

Significance of ADB-funded investment program

  • Provide continued assistance to PMGSY and support the Government’s long-term goal for rural development.
  • It will have transformative impact in terms of rural economy and will bring greater efficiency in terms of access and connectivity for rural people in 5 States.
  • Under it about 2,000 technical personnel will be imparted training on road safety and maintenance.
  • It will also support Government’s drive for innovative approaches to reduce costs, conserve non-renewable natural resources and promote use of waste materials in rural road construction.
  • It builds upon $800 million ADB-financed first Rural Connectivity Investment Program in 2012 that added about 9,000 kms of all-weather rural roads in the same States.
  • The road designs under it take into account climate risks (such as increased rainfall and storm surges) with measures such as greater elevation of road embankments, slope protection, and better drainage.

Pradhan Mantri Gram Sadak Yojana (PMGSY)

PMGSY was launched in year 2000 as a Centrally Sponsored Scheme with an objective to provide single all-weather road connectivity to all eligible unconnected rural villages (habitations). The Union Ministry of Rural Development is nodal implementing authority. It was fully funded scheme by the central government.

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2019 new deadline for completion of PMGSY

Union Government has reduced the deadline for completion of flagship Pradhan Mantri Gram Sadak Yojana (PMGSY) for rural connectivity through all- weather roads from 2022 to 2019.

The annual allocation of the Central release for PMGSY works during year 2015-16 also has been increased by 5,000 crore rupees. With this, the total Central allocation to states under PMGSY would now be 15,100 crore rupees.

Key facts

  • By providing enhanced financial allocation through a modified funding pattern in the PMGSY scheme, Government is seeking to accelerate the implementation of rural connectivity.
  • It is also considering giving financial incentives to the states achieving the targets allocated to them under the PMGSY.
  • Government also has accepted the recommendation of the Sub-Group of Chief Ministers on Rationalization of Centrally Sponsored on modified sharing pattern.
  • Recommendations: The sub group has recommended that fund sharing pattern of PMGSY between the Centre and States for all states will be in the ratio of 60:40.
  • But for all land locked 8 North Eastern states and 3 Himalayan states, the fund sharing pattern of PMGSY between the Centre and States will be in the ratio of 90:10.

About Pradhan Mantri Gram Sadak Yojana (PMGSY)

  • PMGSY was launched in year 2000 as a Centrally Sponsored Scheme.
  • Objective: To provide single all-weather road connectivity to all eligible unconnected rural villages (habitations).
  • Nodal Authority: Union Ministry of Rural Development. It was fully funded by the central government.
  • Implantation: Under phase I of PMGSY, 1,78,184 unconnected habitations were identified.
  • So far, 1,12,550 identified habitations which accounts for 63 per cent of the target have been connected with the PMGSY roads.
  • Presently, about 37 per cent of identified habitations as per the mandate of the scheme are yet to be connected with the PMGSY roads.

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