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PMGY was launched in 2000-2001 in all States and Union Territories (UTs) in order to achieve the objective of sustainable human development at the village level. The PMGY envisages allocation of Additional Central Assistance (ACA) to the States and UTs for selected basic minimum services in order to focus on certain priority areas. PMGY initially had five components viz., primary health, primary education, rural shelter, rural drinking water and nutrition. Rural electrification was added as an additional component from 2001-02. For 2002-03 as well as 2003-04, the allocation of ACA for PMGY was Rs. 2,800 crore. Both financial and physical monitoring of the programme is being carried out by the Planning Commission.
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Pradhan Mantri Gram Sadak Yojana (PMGSY) was launched on 25th December, 2000 as a Centrally Sponsored Scheme to provide road connectivity in rural areas of the country. The programme envisages connecting all habitations with a population of 500 persons and above in plain areas and 250 persons and above in Hill States, Tribal (Schedule V) areas, the Desert Areas (as identified in Desert Development Programme) and in the 60 Left Wing Extremism affected / Integrated Action Plan districts as identified by the Ministry of Home Affairs/Planning Commission
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