Delhi Speeds Up Local Projects With Fund Reforms
ECONOMY & POLICY

Delhi Speeds Up Local Projects With Fund Reforms

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. 

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. 

Related Stories

Gold Stories

Next Story
Resources

Schindler named among Forbes’ World’s Best Employers 2026

Schindler has been named among Forbes’ World’s Best Employers 2026, a global ranking recognising companies for their workplace environments.Compiled by Forbes in partnership with Statista, the ranking is based on independent employee feedback, including whether employees would recommend their organisation to friends and family.The company said the recognition reflected its focus on creating a workplace where employees can develop their expertise and build careers. ..

Next Story
Infrastructure Urban

India needs an export-execution mindset: Vishesh Jain

Interview with Vishesh Jain, Founder & CEO, EximpleWhat gaps in India’s global trade ecosystem led you to build Eximple, and what problem did you see businesses struggling with most?Eximple came out of a problem that all three founders had seen from different choke points in the trade ecosystem. India has millions of MSMEs and manufacturers, and many of them can make products that are genuinely competitive on quality. Yet only a small fraction is able to build meaningful international businesses. In our experience, the gap is usually not manufacturing capability; it is the ability to exe..

Next Story
Building Material

Nuvoco reports 13.5% revenue growth in Q2 FY27

Nuvoco Vistas Corp. Ltd. reported consolidated revenue of Rs 27.9 billion for Q2 FY27, up 13.5% year on year. Cement sales volume rose 9% to 4.7 million tonnes (MMT), while EBITDA increased 11% to Rs 4.11 billion.The company said it began its cement operations in 2014 with a 2.3 MMT per annum (MMTPA) operation at Nimbol. It now aims to reach 35 MMTPA of cement capacity by FY28, nearly 15 times its initial capacity. Its portfolio spans cement, ready-mix concrete and modern building materials.On sustainability and cost efficiency, Nuvoco partnered with CleanMax for a 46.4 MW wind-solar hybrid re..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code