New Delhi, May 19: The Centre has given in to a demand of the Bihar government to not to involve any central agency in construction of roads under Pradhan Mantri Gram Sadak Yojana (PMGSY) scheme, ending the three-year impasse over approval of new projects for the state.

The Bihar government and the Union rural development ministry have been at loggerheads over involvement of central agencies such as CPWD, NBCC, NHPC, IRCON and NPCC in construction of roads under the PMGSY scheme.

After approved by the rural development ministry, PMGSY roads are constructed by the rural road department of each state and the local government agencies. However, in case of Bihar, the Union government has allowed five central agencies, apart from the state government wing, to construct roads. The Bihar government has been opposing the involvement of central agencies in execution of road projects.

Not a single road project from Bihar has been approved under PMGSY since February 2009 owing to this issue. In February 2009, the ministry had last approved 2,000km of rural roads under PMGSY.

“I have approved proposal for construction of new roads under PMGSY in Bihar. We have resolved the issues with the Bihar government,” rural development minister Jairam Ramesh said at a news conference today.

The ministry yesterday approved 3,900km of roads covering 1,350 habitations in the state. This work will be conducted by the state government and its agencies, he said. The Centre will give Rs 2,440 crore for these roads.

Bihar government’s performance in construction of roads under the PMGSY has been slow, Ramesh said. The ministry has approved 37,000km of rural roads in the last 12 years.

The state government department was supposed to construct 21,000km roads while the five central agencies have been awarded 15,600km of roads.

The state government department has been able to complete 37 per cent of its work while the central agencies have competed 75 per cent of the work given to them.

“The pace of work undertaken by the state government is slow. Still, we have agreed that the work will be done by the state government agency. The mandate of the central agencies is not to construct rural roads. The capacity of the state agency has to be strengthened. Unless more work is given, how can it improve its capacity,” Ramesh said.