Delhi Speeds Up Local Projects With Fund Reforms

05 Aug 2025 CW Team

To accelerate infrastructure development, increase transparency, and eliminate financial bottlenecks, the Delhi government has introduced reforms to the Chief Minister Development Fund (CMDF) and the MLA Local Area Development (MLALAD) Fund, Chief Minister Rekha Gupta announced on Thursday.

Under the revised policy, the Municipal Corporation of Delhi (MCD) is now authorised to execute development projects using CMDF and MLALAD funds. Previously, such works could only be undertaken by the Irrigation and Flood Control Department (I&FC) or the Delhi State Industrial and Infrastructure Development Corporation (DSIIDC), which often prioritised larger projects and caused delays in smaller-scale works.

“This change allows the municipal corporation to address minor development needs more efficiently,” Gupta said in a statement.

She added that the reforms also streamline the fund disbursement process. Now, 10 per cent of the estimated cost will be released at project approval, while another 40 per cent will follow once necessary documentation is submitted, making up 50 per cent of the tender value. The remaining 50 per cent will be disbursed upon project completion.

Officials noted that this approach will reduce payment delays to contractors and construction firms. Gupta emphasised that since taking office, her government has prioritised the revival and acceleration of local development projects and identified procedural hurdles that, once removed, can lead to faster execution.

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