01-08-2025
Now, Delhi's civic body can use CM & MLA funds to fast-track infra projects
To fast-track infrastructure projects, enhance transparency and eliminate financial hurdles, the Delhi government has introduced key reforms in schemes like the Chief Minister Development Fund (CMDF) and MLA Local Area Development (MLALAD) Fund, Chief Minister Rekha Gupta said on Thursday.
Now, the Municipal Corporation of Delhi (MCD) can use the CMDF and MLALAD funds to carry out development works. Earlier, such projects could only be executed through the Irrigation and Flood Control Department (I&FC) or the Delhi State Industrial and Infrastructure Development Corporation (DSIIDC), she added.
'This often caused delays in completing smaller projects, as these departments prioritised larger works. With this change, minor development works will now be handled more swiftly by the municipal corporation,' Gupta said in a statement.
She added that changes have also been introduced in releasing payments for these projects. 'The first instalment, amounting to 10% of the estimated cost, will be released to executing agencies at the time of project approval. The second instalment, which along with the first instalment, will make up 50% of the tender amount, will be released upon submission of the required documents.'
The remaining 50% will be released on completion of work, said officials.
Gupta emphasised that this reform will significantly reduce delays in payments to construction companies and contractors.
'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,' said Gupta.
