Chandigarh, Aug. 14 -- The Centre has cancelled road and bridge projects worth over Rs.800 crore sanctioned to Punjab under the Pradhan Mantri Gram Sadak Yojana (PMGSY-III), citing delays in tendering and commencement of construction. The move comes as a second setback for the financially strained state government, which is already reeling from the Centre's earlier decision to withhold over Rs.7,000 crore in Rural Development Fund (RDF) grants, a key source for rural infrastructure and road repairs.

According to information accessed by TSG, the PMGSY-III allocation for Punjab included the upgradation of 64 roads spanning 628.48 km and the construction of 38 bridges (each over 15 metres in length), with a total project cost of Rs.828.87 c...