Research Journal of Economics & Business Studies - RJEBS - The ...

Rural Infrastructural Development through Rural Roads: with special reference to
Pradhan Mantri Gram Sadak Yojana (PMGSY)
R. Sampath,
Assistant Professor, Economics Wing, DDE, Annamalai University, Annamalai Nagar.
D. Murugan
Assistant Professor, Department of Economics, Annamalai University, Annamalai Nagar.
1. Introduction and Background
Rural roads are the basic infrastructure requirement and play a vital role in socio-economic
upliftment of rural community. They contribute significantly in rural development by creating
opportunities to access goods and services located in nearby villages or major town/market centers.
Provision of rural roads increases mobility of men and materials thus facilitating economic growth.
These, in turn, assist in reducing poverty and leads over all social development. Several studies have
already established that there exist a strong relationship between rural roads and socio-economic
development. Hine (1982) reviewed several impact studies conducted in about 16 countries. Most of
these case studies considered are optimistic about the relationship between road investment and
agricultural development. In India, even during the ’80s, studies on socio-economic aspects of rural
roads were conducted in selected nine districts under the aegis of Indian Roads Congress. The
objective of these studies was to find out and quantify the possible impact of roads on socio-economic
development in rural areas. CRRI (1987) carried out the compilation and analysis of the data for the
nine districts, to quantify the aggregate impacts.
Some of the findings are: (a) increase in agricultural production due to road facility, (b)
increase in fertilizer consumption,(c) increase in non-agricultural activities, and (d) better utilization of
existing facilities like, school, health, banks and post offices. Similarly, a socio-economic survey
conducted in a remote area in India by CRRI in 1989, showed that the villages located on the main
road are comparatively well developed than those away from the road. The rural transport study
carried out (NCAER and IIMB,1989) for two different periods in 1979 and 1989 revealed that after the
development of rural roads, there was a change in transport modes in rural areas and also an increase
in economic activities.
The economic analysis of rural roads carried out for selected rural road projects original i.e.
unpaved roads. The economic analysis carried out for rural access project (World Bank, 1999) in
Bhutan has shown significant transport cost saving. The mule transport costs are as high as 6 times of
truck transport cost. The net agricultural benefits
, educational benefits and health benefits were calculated and added in the benefit the Agricultural
Development Programme (ADP) in Rajasthan. The benefits are estimated by taking net incremental
agricultural production value, net agricultural transport cost savings and non-agricultural vehicle
operating cost savings. The overall average IRR for the selected 21 road projects was found to be
15.64 per cent. In addition, this study results also showed positive relationship between the road
improvement interventions with socio-economic Parameters.
In rural infrastructural development rural roads connectivity is one of the key components. It
promotes access to economic and social services and thereby generating increased agricultural income
and productive employment opportunities in rural India as well as ensures sustainable poverty
reduction. The Ministry of Rural Development (MORD) is involved with the task of reducing poverty
and bringing about rapid sustainable development and socio-economic transformation in rural India.
To enable the process of developing rural India, various schemes are being implemented across the
districts of the country. As a part of this, Pradhan Mantri Gram Sadak Yojana (PMGSY) was
launched to increase rural road connectivity with a view to promote greater access to economic and
social services and thereby, generating increased economic and social opportunities in rural India.
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