PMGSY-IV launched in Odisha: 827 roads, 1,702 km at ₹1,698 crore
Synopsis
On Labour Day 2025, Union Minister Shivraj Singh Chouhan arrived in Odisha's Rayagada not just for a ribbon-cutting — he brought ₹1,698 crore in road sanctions, ₹868 crore in MGNREGA funds, and ₹630 crore for pending rural housing, all in a single sitting. For 898 villages across eight of Odisha's most underserved districts, PMGSY-IV could be the most consequential infrastructure push in years.
Key Takeaways
Shivraj Singh Chouhan launched PMGSY-IV in Odisha on 1 May 2025 at Rayagada .
827 new roads spanning 1,701.84 km sanctioned at ₹1,698.04 crore under a 60:40 Centre-state funding ratio.
898 villages across 8 districts — Kandhamal, Keonjhar, Khordha, Koraput, Malkangiri, Nabarangpur, Rayagada and Sambalpur — to get all-weather road connectivity. ₹868.71 crore released as first MGNREGA instalment for 2026–27 ; ₹630.61 crore approved for pending PMAY-G houses. ₹30.07 crore sanctioned under WDC-PMKSY 2.0 for watershed development.
Union Minister for Agriculture & Farmers Welfare and Rural Development Shivraj Singh Chouhan on Friday, 1 May 2025, formally launched the fourth phase of the Pradhan Mantri Gram Sadak Yojana (PMGSY-IV) in Odisha, sanctioning 827 new roads spanning 1,701.84 km at a total outlay of ₹1,698.04 crore. The launch, held in Rayagada district in the presence of Chief Minister Mohan Charan Majhi, marks the largest rural road push under the scheme for the state in recent years, covering 898 villages across eight districts.
Key Announcements at the Launch
The inauguration took place at a special programme in Rayagada, also attended by Panchayati Raj and Drinking Water Minister Ravi Narayan Naik. Chouhan formally handed over the approval letter for PMGSY-IV to Chief Minister Majhi on the dais. Chief Minister Majhi also announced several new road projects for Rayagada district and inaugurated multiple drinking water and infrastructure projects on the occasion.
On the occasion of Labour Day, Chouhan announced the release of ₹868.71 crore as the first instalment under MGNREGA for the financial year 2026–27. An additional ₹630.61 crore was approved for completion of pending houses under Pradhan Mantri Awaas Yojana-Gramin (PMAY-G), and ₹30.07 crore was sanctioned under WDC-PMKSY 2.0.
Coverage and Funding Structure
Under the first phase of PMGSY-IV, the 898 villages to receive all-weather road connectivity are spread across Kandhamal, Keonjhar, Khordha, Koraput, Malkangiri, Nabarangpur, Rayagada and Sambalpur districts. Funding is shared between the Centre and the state in a 60:40 ratio.
Supplementary financial support is also being extended for the completion of previously sanctioned but unfinished road projects, ensuring that even the most remote regions are connected to the development mainstream. Approximately 1,702 km of new roads will be constructed in total under this tranche.
What the Government Said
Addressing the gathering, Chouhan said the double-engine government is working with full commitment for the holistic development of Odisha. He added that roads are not merely a means of transportation, but lifelines for employment, education, healthcare and overall socio-economic progress.
Chief Minister Majhi invoked Mahatma Gandhi's words — that India lives in its villages and without rural development, national development is impossible. He reiterated his commitment to the vision of former Prime Minister Atal Bihari Vajpayee, under whose tenure PMGSY was originally launched in 2000.
Point of View
Including Malkangiri and Koraput, have historically been PMGSY's most challenging terrain and the BJP's most contested electoral ground. The 60:40 funding split places meaningful fiscal pressure on the state, and Odisha's capacity to absorb and execute nearly 1,702 km of new road construction alongside pending backlogs will be the real test. The bundling of MGNREGA, PMAY-G and WDC-PMKSY announcements on Labour Day signals a deliberate optics strategy, but the convergence of these schemes on the ground — where departmental silos often obstruct coordination — remains an open question.
NationPress
1 May 2026
Frequently Asked Questions
What is PMGSY-IV and what does it mean for Odisha?
PMGSY-IV is the fourth phase of the Pradhan Mantri Gram Sadak Yojana, India's flagship rural road connectivity programme. For Odisha, it means 827 new roads spanning 1,701.84 km at a cost of ₹1,698.04 crore, connecting 898 villages across eight districts with all-weather roads.
Which districts in Odisha will benefit from PMGSY-IV?
Eight districts will receive connectivity under the first phase of PMGSY-IV: Kandhamal, Keonjhar, Khordha, Koraput, Malkangiri, Nabarangpur, Rayagada and Sambalpur. These include some of Odisha's most remote and tribal-dominated regions.
How is PMGSY-IV funded — who pays what?
The project follows a 60:40 funding ratio, with the Centre contributing 60% and Odisha state government bearing the remaining 40% of the ₹1,698.04 crore outlay. Additional funds are also being provided for completing previously sanctioned but unfinished road projects.
What other welfare announcements were made alongside the PMGSY-IV launch?
Union Minister Chouhan announced ₹868.71 crore as the first MGNREGA instalment for 2026–27, ₹630.61 crore for pending PMAY-G housing completions, and ₹30.07 crore under WDC-PMKSY 2.0 for watershed development — all on the occasion of Labour Day, 1 May 2025.
When was PMGSY originally launched and how does Phase IV differ?
PMGSY was originally launched in 2000 under Prime Minister Atal Bihari Vajpayee to connect unlinked rural habitations. Phase IV builds on three earlier phases and introduces supplementary support for completing previously sanctioned but unfinished roads, alongside new sanctions, to ensure even the remotest areas are covered.
