Shimla: In a major boost to rural road infrastructure in Himachal Pradesh, the Central Government has substantially enhanced the financial assistance for road construction under the Pradhan Mantri Gram Sadak Yojana (PMGSY), increasing the allocation from ₹90 lakh to ₹1.60 crore per kilometre. The revised funding is expected to accelerate road development in the state’s difficult hilly terrain and help expedite long-pending projects.
Earlier, state PWD Minister Vikramaditya Singh had raised the issue of escalating construction costs with the Union Ministry of Rural Development, and sought a revision in the financial norms for road projects in Himachal Pradesh.
The Centre has also sanctioned ₹2,247 crore for PMGSY Phase IV, under which 294 rural roads are proposed to be constructed across the state. According to officials, tenders have already been awarded for 235 roads, while the remaining 59 projects are yet to be finalised due to a lack of contractor participation.
Officials said the highest number of pending roads are in Shimla district, where contractors have shown limited interest in taking up the projects. Similar delays have also been reported in Dalhousie, Mandi, Tissa and Bhatiyat, where several tenders remain unresolved.
The Public Works Department (PWD) has been compelled to cancel and reissue several tenders after receiving only a single bid, which does not meet the prescribed tendering norms. Another challenge, officials said, is the PMGSY requirement that contractors maintain the roads for five years after completion, making many projects less attractive to bidders.
Under PMGSY guidelines, contractors are responsible not only for constructing the roads but also for their repair and maintenance during the mandatory maintenance period. Department officials believe that the increased financial allocation will make these projects more viable for contractors while ensuring better quality and long-term maintenance of rural roads.
The revised funding is expected to improve connectivity in remote villages, benefiting sectors such as education, healthcare, agriculture and rural livelihoods by providing easier access to essential services and markets.
The Public Works Department has directed field officials to expedite the next round of tenders in line with the revised financial provisions so that delayed projects can be taken up at the earliest.
