Delhi Cabinet Approves ₹1,400 Crore Chief Minister Development Fund to Boost Local Infrastructure

Delhi Cabinet Approves ₹1,400 Crore Chief Minister Development Fund to Boost Local Infrastruc...webp


Focus on Community Projects, Civic Amenities, and Local-Level Development in FY26​

New Delhi, May 15—The Delhi Cabinet has approved the establishment of the Chief Minister Development Fund (CMDF) with a corpus of ₹1,400 crore for the financial year 2025–26. The fund aims to enhance civic infrastructure and public amenities across the national capital.

Project Ceiling Set at ₹10 Crore, CM Empowered for Exceptions​

Officials confirmed that under this initiative, the maximum cost of a single project has been capped at ₹10 crore, although the Chief Minister may approve higher expenditures in exceptional cases.

According to a senior government official, the CMDF is designed to supplement Delhi’s infrastructure requirements, addressing critical gaps through a flexible and localised development mechanism. The Planning Department has already issued detailed guidelines for the fund’s utilisation.

Priority Projects: Schools, Hospitals, Slums, Parks, and More​

The fund will prioritise community-based development projects not included in large-scale infrastructure schemes. These include:
  • Construction of dhobighats
  • Renovation and additions in government schools and hospitals
  • Installation of toilet blocks in slums
  • Upgradation of public parks and sports complexes
The CMDF will also cover smaller yet impactful civic amenities like:
  • Water coolers
  • Community halls
  • Street lighting
  • Drains, footpaths, cycle tracks
  • Roadworks and sewage treatment plants

Project Proposal and Fund Release Process​

The concerned departments will formulate proposals, guided by local needs and directions from the Chief Minister. After internal scrutiny, the Planning Department will submit the proposals for the CM’s final approval.

Once approved, departments will be directed to prepare cost estimates and identify executing agencies. After a detailed examination, administrative approval and expenditure sanctions will be issued.

Funds will be disbursed in four tranches based on project progress:
  • 10% initially
  • 30% after fthe irst stage
  • 30% after mid-stage
  • 30% upon nearing completion

Third-Party Evaluation and Maintenance Provision​

A third-party evaluation will be conducted for all projects with a cost of ₹10 crore or more. Up to 1% of the project cost may be allocated for this assessment.

Notably, the fund will not cover maintenance and operational costs, which must be budgeted separately by the executing departments.

This strategic step by the Delhi Cabinet is expected to strengthen the capital's grassroots infrastructure and empower local-level governance for more inclusive urban development.
 
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