PM Narendra Modi said to approve Rs90,000 crore boost to rural road program
Prime Minister Narendra Modi is said to have cleared a proposal to spend an additional Rs90,000 crore under the PMGSY
New Delhi: Prime Minister Narendra Modi is planning to spend an additional Rs90,000 crore to provide road connectivity in India’s remote villages by March 2020, officials with knowledge of the plan said.
About Rs1.4 trillion has already been spent under the program. The cost will be shared in the ratio of 60:40 by the federal and state governments, the officials said, asking not to be identified citing rules.
A boost to the rural roads program ahead of crucial state polls and a national election in 2019 may assist PM Modi, who has been criticized for pulling down India’s economic growth to a three-year low with his shock cash ban last November and the chaotic introduction of the goods and services tax (GST) in July.
The funds would be spent as part of Pradhan Mantri Gram Sadak Yojana — a program for “all-weather” rural roads started by former Prime Minister Atal Bihari Vajpayee in 2000.
Started as part of a poverty reduction strategy, it was widely lauded for connecting isolated hamlets and allowing small businesses deliver their produce faster.
Rural development secretary Amarjeet Sinha wasn’t immediately available for a comment.
The program “is now being implemented as never before” and the pace of construction of roads accelerated to reach 133km a day in 2016-17, against an average of 73km in 2011-2014, finance minister Arun Jaitley said in his budget speech in February.
Even though economic growth rebounded after Modi assumed office in 2014, the benefits have not been felt by farmers and jobless youth.
Modi’s attempts at changing archaic labour and land laws to make it easy for businesses were labelled pro-wealthy by his critics and his party lost elections in the national capital and Bihar two years ago. Bloomberg
- Karnataka coalition dodges crisis, threat of collapse still looms
- BJP braces for multiple battles as regional satraps come together
- Theresa May wins confidence vote, Brexit is still in crisis
- SP now plans to bring RLD into anti-BJP fold in UP
- Jagan throws weight behind KCR’s federal front plank ahead of polls
Editor's Picks »
- RIL Q3 results: Will Reliance Jio, Reliance Retail make up for lost energy?
- Why Tata Motors’ Project Charge at JLR is failing to recharge its shares
- Outlook on global profit growth worst since 2008 financial crisis
- Q3 results: ICICI Securities loses its retail broking crown
- High drug approvals to keep up pricing pressure for pharma firms