The Maharashtra government has tightened the approval process for new infrastructure projects after identifying a pattern of departments undertaking works that exceed their financial capacity, often resulting in delays and significant cost overruns.
Under a new circular issued by the state’s Planning Department, departments proposing fresh projects will be required to undergo an additional level of scrutiny if their existing financial commitments, combined with the cost of the proposed project, cross a specified threshold.
The revised framework states that approval from a High-Powered Committee on Construction, headed by the Chief Secretary, will now be mandatory when the total value of ongoing commitments and the proposed project exceeds twice the average annual expenditure recorded under the relevant budget head during the previous three financial years.
The move is aimed at improving financial discipline, strengthening project planning and ensuring that departments undertake infrastructure works in line with their spending capacity. Officials believe the measure will help prevent situations where projects remain incomplete for extended periods due to funding constraints, leading to rising costs and implementation delays.
Until now, infrastructure proposals followed the standard approval mechanism, wherein the Finance Department examined projects before being placed before the state Cabinet for final approval. Under the revised system, projects that breach the prescribed expenditure threshold will first be evaluated by the Chief Secretary-led committee before progressing through the existing approval process.
The government has introduced an additional review mechanism to assess the financial viability and long-term implications of large projects before commitments are made. Authorities expect the framework to improve resource allocation, reduce the burden of pending liabilities and ensure that infrastructure investments are aligned with budgetary realities.
The policy is also expected to strengthen oversight of public expenditure by ensuring that departments prioritise projects based on available financial resources and implementation capacity, thereby supporting more efficient execution of infrastructure programmes across the state.
Source: The Indian Express
