Rekha Gupta Unleashes Bold Reforms to End Delays, Pump ₹1,400 Cr Into Delhi’s Development

New Delhi(The Uttam Hindu): In a major step to fast-track development projects, enhance transparency, and eliminate financial hurdles, Chief Minister Mrs. Rekha Gupta has introduced key reforms and taken crucial decisions in construction-related procedures. The Chief Minister stated that these decisions will ensure the 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, Mrs. Rekha Gupta noted that the 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,” the Chief Minister said.

She further informed that extensive consultations were held with senior departmental officials, public representatives, and construction contractors to identify bottlenecks. Continuous assessments led to the formulation of new measures and amendments to existing rules governing construction projects.

She emphasised that these reforms mark a crucial step in building a transparent, efficient, and development-oriented governance framework for Delhi. The key reforms introduced are as follows:

Chief Minister’s Development Fund (CMDF)

“Rekha Gupta Unleashes Bold Reforms to End Delays, Pump ₹1,400 Cr Into Delhi’s Development”

Chief Minister Mrs. Rekha Gupta informed that the purpose of this fund is to meet the infrastructural needs of Delhi. For the implementation of this scheme in 2025–26, a budget allocation of Rs 1,400 crore has been approved for the Planning Department of the Delhi Government.

She stated that any MLA requiring funds for a development project in their constituency can utilise this fund. 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.

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 directives of the Delhi Chief Minister.

Importantly, the Planning Department will release 50% of the total project cost in advance, while the remaining 50% 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.

MLA Fund Scheme

The Chief Minister stated that under this scheme of the Delhi Government, MLAs undertake development works in their respective constituencies. A major change has now been introduced in the payment release process for these projects.

Under this scheme, the Urban Development Department disburses the funds. The first instalment, amounting to 10% 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% of the tender amount, will be released upon submission of the required documents.

This means that as soon as the work begins, half of the project’s total funds will be disbursed. The remaining 50% will be released upon completion of the work. The Chief Minister emphasised that this reform will significantly reduce delays in payments to construction companies and contractors.

Municipal Corporation to Undertake Development Works in Unauthorised Colonies

The Chief Minister also informed that MLAs can now use their funds to carry out development works through the Municipal Corporation of Delhi. Earlier, such projects could only be executed through the Irrigation and Flood Control Department or the Delhi State Industrial and Infrastructure Development Corporation (DSIIDC).

She noted that 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.

Implementation of DSR 2023

Chief Minister Mrs. Rekha Gupta informed that 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.