Delhi's MCD can now directly use MLA and CM funds for local projects.
This reform aims to eliminate delays and speed up smaller development works.
A new payment system will give contractors 50% of project funds upfront.
Delhi Government Announces Reforms To Speed Up Local Projects
The Municipal Corporation of Delhi (MCD) will now be able to use MLA and Chief Minister's development funds, a move aimed at cutting delays and improving transparency.
Summary
The Delhi government has introduced significant reforms to its local development fund schemes to fast-track infrastructure projects, increase transparency, and solve payment issues, Chief Minister Rekha Gupta announced on Thursday.
Under the new changes to the Chief Minister Development Fund and the MLA Local Area Development Fund, the Municipal Corporation of Delhi (MCD) will now be authorized to carry out development projects, reported PTI.
Previously, projects using these funds could only be executed by the Irrigation and Flood Control Department or the Delhi State Industrial and Infrastructure Development Corporation.
CM Gupta stated that this old system often led to delays, especially for smaller projects, as the larger departments would prioritize major works. "With this change, minor development works will now be handled more swiftly by the municipal corporation," she said in a statement quoted PTI
Reportedly, The government has also reformed the payment process to prevent financial hurdles for contractors. Indian express reported that a new system will see the first installment, 10% of the project's estimated cost, released when the project is approved.
A second installment will bring the total upfront payment to 50% of the tender amount once necessary documents are submitted. The final 50% will be paid upon the completion of the work.
Gupta emphasized that this change will significantly cut down on payment delays for construction companies.
"From the day we assumed office, our priority has been to revive and accelerate development works," Gupta said. "During our review, it became evident that certain procedural changes could significantly speed up project execution." quotes Indian Express.
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