Govt unveils reforms to speed up development projects in city

In a landmark move aimed at expediting infrastructure projects and improving transparency in the Capital, Delhi Chief Minister Rekha Gupta on Thursday announced sweeping reforms in the execution and funding of construction-related development works. Key decisions include a streamlined payment process, updated cost standards and a massive Rs 1,400-crore allocation under a newly introduced Chief Minister’s Development Fund (CMDF).

CM Rekha Gupta said the reforms are designed to revive delayed or stalled development works across the city and ease the financial burden on implementing agencies 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,” she said.

One of the flagship measures announced is the CMDF, with a budgetary provision of Rs 1,400 crore for 2025–26. Under this, MLAs can propose projects worth up to Rs 10 crore in their constituencies. The Planning Department will release 50% of the funds upfront, and the remaining 50% will be paid after project completion, ensuring quicker execution and timely payments.

The MLA Fund Scheme has also been revamped to ensure smoother disbursement. Now, 10% of the estimated cost will be released at the project approval stage, and 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.

In a significant decentralisation move, the Municipal Corporation of Delhi (MCD) will now be authorised to undertake development works in unauthorised colonies using MLA funds—previously a responsibility of departments like DSIIDC and Irrigation and Flood Control, which often led to delays due to their larger project priorities.

The Chief Minister also confirmed that Delhi will now adopt the CPWD’s Delhi Schedule of Rates (DSR) 2023, replacing the outdated DSR 2016. The updated rates will ensure contractors are compensated fairly for current material and labour costs, expected to attract more reputed firms to participate in government tenders.

CM Rekha Gupta called the reforms “a decisive step towards transparent, efficient, and citizen-focused governance,” aimed at delivering timely infrastructure to the people of Delhi.