MLAs can now use funds to carry out development works through MCD: CM Gupta

New Delhi, Jul 31 (PTI) Chief Minister Rekha Gupta on Thursday said the MLAs can now use their funds to carry out development works through the MCD as against the earlier norms when such projects could only be executed through the Irrigation and Flood Control Department or the Delhi State Industrial and Infrastructure Development Corporation (DSIIDC).

The chief minister said 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, she added.

The chief minister has introduced key reforms to fast-track development projects, enhance transparency and eliminate financial hurdles, and taken crucial decisions in construction-related procedures, said an official statement.  Gupta said these decisions will ensure rapid execution of development works, ease the burden on implementing agencies and provide financial relief to construction companies, steering the capital swiftly towards the vision of a “Developed Delhi”.

Highlighting the state of delayed and stalled projects over the past several years, the chief minister said that slow pace of construction had adversely impacted the city’s infrastructure.  “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 added.  The new measures and amendments to existing rules governing construction projects have been formulated following extensive consultations with senior departmental officials, public representatives and construction contractors to identify bottlenecks.  Gupta said the purpose of the Chief Minister's Development Fund is to meet the infrastructural needs of Delhi.

A budget allocation of Rs 1,400 crore has been approved for the Delhi government's Planning Department for implementation of this scheme in 2025–26.

Any MLA requiring funds for a development project in their constituency can utilise this fund, she added.

The maximum cost of a single project has been fixed at Rs 10 crore. This scheme will provide a flexible and dynamic mechanism for development at the local level, the statement said.  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 chief minister's directives.

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, it said.  The MLAs can undertake development works in their respective constituencies under the MLA Fund Scheme. A major change has now been introduced in the payment release process for these projects.

The Urban Development Department disburses funds under this scheme.

The first instalment, amounting to 10 per cent of the estimated cost, will be released to the executing agencies at the time of project approval. The second instalment, which along with the first instalment will make up 50 per cent of the tender amount, will be released upon submission of the required documents.

This means that half of the project’s total funds will be disbursed as soon as the work begins. The remaining 50 per cent will be released upon completion of the work in a bid to reduce delays in payments to construction companies and contractors.

Gupta said the 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.

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. It is published by the Central Public Works Department (CPWD).

With the implementation of DSR 2023, contractor companies will now be paid according to the updated rates for construction materials and labour.

One key advantage of this change is that it is expected to attract larger companies to actively participate in development works. PTI SLB AS AS