India has one of the largest road networks across the globe, with a total road network size of 5.5 million km. However, there were around 2.7 million km of the rural road network in India that were still lagging behind due to poor road connectivity.

Majority of people living in rural areas are farmers whose primary source of income depends on their agricultural activities. Until the year 2000, around 30% of the farmers in the rural communities, especially in the hilly states such as Meghalaya, Uttarakhand and Himachal Pradesh had difficulty in accessing roads and social amenities. This gave rise to a new scheme i.e PMGSY for the welfare of rural areas in India with the objective to have single all-weather road connectivity.  

Since the launch of the PMGSY scheme, they have issued thousands of tenders on different portals and invite bidders to submit their bids. This has also opened up great business opportunities for government contractors. 

In this article, we’ll try to cover in detail about the PMGSY scheme and how you can get the latest tenders of PMGSY and new business opportunities under PMGSY.

What is Pradhan Mantri Gram Sadak Yojana?

PMGSY stands for Pradhan Mantri Gram Sadak Yojana, and this programme was launched on 25th December 2000 by the Government of India to provide road connectivity to all unconnected villages in the rural areas of the country.

What is the objective of PMGSY scheme?

The PMGSY scheme aims to provide better road connectivity and improves the ease of living in rural areas, thereby increasing agricultural productivity and ensuring poverty reduction across the country. 

Under the PMGSY scheme, roads are being constructed, maintained and repaired by the Ministry of Rural Development along with the state governments. Each state government has set up a State-level autonomous agency i.e State Rural Road Development Agency (SRRDA) who is responsible for the implementation of PMGSY scheme.

How many phases have been launched under PMGSY programme?

The Ministry of Rural Development, Government of India has launched three phases of Pradhan Mantri Gram Sadak Yojana (PMGSY) since 2000. Below are the details for each of the phases:

PMGSY – Phase I

PMGSY of Phase I was launched on 25th December 2000 to provide all-weather road connectivity to all unconnected villages with a population size of 500+ in plain areas, 250+ in hilly states (Jammu & Kashmir (J&K), Himachal Pradesh, Sikkim etc), tribal, and desert areas. 

Under the PMGSY-I Scheme, It was targeted to cover 1,35,436 lakh km of village road connectivity and 3.68 lakh km (approx) of upgrading of road length in the rural areas.

PMGSY – Phase II

After the successful launch of Phase I, Phase II was launched in May 2013. Under the PMGSY-II Scheme, the roads that were built in Phase I for village connectivity are eligible for upgrading roads with a  targeted length of 50, 000 km of the road network.


The Phase-III was launched in August 2018 by the approval of Cabinet Committee on Economic Affairs (CCEA), chaired by the Prime Minister Shri Narendra Modi.

Under the PMGSY-III Scheme – It is responsible for the maintenance and upgradation of rural roads that were already built under phase I and phase II. This scheme was to cover a total road length of 1,25,000 km across various villages in the states with an estimated cost of Rs. 80, 000 crores.

How much amount has been allocated for Phase III of PMGSY?

The budget allocation for Phase III of PMGSY has been set as Rs 80,250 crore and targets to cover 1,25,000 Km with an upgrade of 25,000 km road length for the next five years. Coming under Rural India development, the focus of Modi 2.0 govt for Rural India is Gaon, Garib, Kisan.

How many tenders does PMGSY publish in 2018-19?

Like tenders of other government tendering authorities, PMGSY also issues all tender notices, bid awards on various government websites and invite bidders to bid so that they can assess who is the one that can provide the best quality at a reasonable price.

The below graph shows that more than 13,000 PMGSY tenders were published in 2018 and around 5,000 PMGSY tenders have already been published this year. Click on the graph to get a better insight.

What are the top leading states in PMGSY for business opportunities in 2019-20?

All government tenders issued by Pradhan Mantri Gram Sadak Yojana (PMGSY) across India in 2019 and the distribution of prominent state-wise tenders are represented below. More than 800 PMGSY Tamil Nadu Tenders have been published, followed by PMGSY Uttarakhand Tenders, PMGSY Odisha Tenders, PMGSY Maharashtra Tenders and PMGSY Assam Tenders.

How can I find out about PMGSY tender opportunities?

BidAssist is an online government tender portal that helps SMEs to find the latest e-tenders, tender notices and bid awards for all government departments. We publish all PMGSY tenders on the same day they are issued on the government website. 

You can even subscribe for tender alert notification feature. You will receive all latest PMGSY tenders on a daily, weekly or monthly basis through email, SMS or Whatsapp. 

Our platform provides single-point access to information for more than 7000+ authorities from 100+ categories. This will definitely help in saving your time so you can bid on the right tenders.

We hope this article will help you in finding the right tenders for your business. If you found this useful and would like to find out how we can help, do sign up for a FREE TRIAL. We welcome comments and suggestions! Let us know at We will be more than happy to assist you further.