The Pradhan Mantri Gram Sadak Yojana (PMGSY) was announced by the Prime Minister on 15th August, 2000 and the Scheme was launched on 25th December, 2000. The Primary source of funding for the Programme is from the Cess on High Speed Diesel, 50% of which is earmarked for Rural roads. The Pradhan Mantri Gram Sadak Yojana has been formulated as an Anti-Poverty Programme, focusing on providing connectivity to unconnected rural Habitations in order to enable access to economic and other essential services.
The Programme is executed by State Government Agencies in a Project Mode. Detailed guidelines have been issued for the PMGSY Scheme and a separate Rural Roads Manual has also been published on the technical aspects of Rural Roads construction.