(i) It promotes rapid economic development through creation and expansion of infrastructure.
(ii) It creates employment opportunities.
(iii) It generates financial resources for development.
(iv) It is ensuring equality of income, wealth and thus, a balanced regional development.
(v) It encourages development of small, medium and cottage industries.
(vi) It ensures easy availability of goods at moderate rates.
(vii)Contributes to community development, Human Development Index i.e. health and educational services.