In a letter to Sinha, the Minister said he was "shocked and taken aback" to read "the totally unfounded allegation" on PMGSY.
"I completely and categorically deny this allegation and I am very confident that the BJP-Chief Ministers with whom I am in regular touch will appreciate my stand. I am well aware of the demands and compulsions of competitive politics but this specific accusation relating to PMGSY is a blatant falsehood," he said.
The Minister said that over last year, he has worked "very hard to untangle the impasse on PMGSY" in Bihar and Jharkhand, Sinha's home state, the two states in which the BJP are in coalition.
Noting that the impasse had a background which had to do with some fundamental failing in these states themselves, Ramesh said in both states the PMGSY programme has now resumed functioning fully.
"As of now, in 2011/12 and 2012/13, Rs 3387 crore worth of projects in Bihar and Rs 1107 crore worth of projects in Jharkhand have already been sanctioned. More sanctions are likely as the year progress. These already sanctioned amounts are the amounts requested for by the state governments," he said.
The Minister also spelt out the steps taken by the Centre and amount sanctioned by it in implementing the PMGSY in BJP-ruled states of Madhya Pradesh, Chattisgarh, Gujarat and Karnataka.
"We have brought about substantial changes in the PMGSY scheme in the 82 Left-wing extremist-affected districts which have benefitted states like Odisha, Chattisgarh and, most of all, your own state of Jharkhand," Ramesh told Sinha who represents Hazaribagh Lok Sabha constituency.
The Minister concluded his letter saying Chief Ministers of BJP ruled states and the states where the BJP is in alliance have written to him "on more than one occasion appreciating that there has been absolutley no discrimination not only in PMGSY, but in all other rural development programmes as well".
