Through the Chief Minister’s Development Fund, MLAs will now be able to carry out works in their constituencies and will also be able to undertake development works in unauthorized colonies through the MCD.
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In a step to speed up development projects, ensure transparency, and eliminate financial hurdles, Chief Minister Rekha Gupta has introduced key reforms and taken crucial decisions in construction-related procedures, and stated that they will ensure the rapid execution of development works.
Through the Chief Minister’s Development Fund, MLAs will now be able to carry out works in their constituencies and will also be able to undertake development works in unauthorized colonies through the MCD.
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Notably, as soon as a tender is issued for any development project, 50 percent of the project amount will be disbursed to the concerned agency.
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A key feature of the scheme is that administrative departments, local bodies, and autonomous institutions (through their administrative secretaries) will be responsible for preparing project proposals based on the directives of the CM.
Gupta has said, “From the day we assumed office, our priority has been to revive and accelerate development works. During our review, it became evident that certain procedural changes could significantly speed up project execution.”
She further informed that extensive consultations were held with senior departmental officials, public representatives, and construction contractors to identify bottlenecks. Continuous assessments led to the formulation of new measures and amendments to existing rules governing construction projects.
According to the CM, the reforms introduced include the Chief Minister’s Development Fund (CMDF), and the purpose of the same is to meet the infrastructural needs of Delhi.
For the implementation of this scheme in 2025–26, a budget allocation of Rs 1,400 crore has been approved for the Planning Department of the Delhi Government, she added.
She stated that any MLA requiring funds for a development project in their constituency can utilise this fund, and the maximum cost of a single project has been fixed at Rs 10 crore.
Importantly, the Planning Department will release 50 per cent of the total project cost in advance, while the remaining 50 per cent will be disbursed upon completion of the work.
Payments will be made to the concerned department or agency based on the project’s progress, utilisation certificates, and completion certificates.
The CM said under the MLA fund scheme, legislators undertake development works in their respective constituencies, and a major change has now been introduced in the payment release process for these projects.
The CM also informed that MLAs can now use their funds to carry out development works through the MCD, while earlier such projects could only be executed through the Irrigation and Flood Control Department or the Delhi State Industrial and Infrastructure Development Corporation (DSIIDC).
According to Gupta, Delhi Schedule of Rates (DSR) 2023 is now being followed for all construction works, replacing the earlier DSR 2016. Although some interim modifications were made in between, they were not comprehensive, she added.
The DSR provides a detailed list of rates for various construction items, materials, and labour, serving as a standard reference for cost estimation and tendering processes, and it is published by the Central Public Works Department (CPWD).
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