4 min readMumbaiJun 6, 2026 12:17 PM IST
First published on: Jun 6, 2026 at 12:17 PM IST
The Maharashtra government has introduced an additional layer of scrutiny for infrastructure projects after finding that several departments were taking up works far beyond their available financial capacity, leading to delays and sharp cost escalations.
Under a government circular issued by the Planning Department, departments will now have to seek clearance from a Chief Secretary-led High-Powered Committee on Construction before taking up new projects if the combined cost of the proposed project and pending commitments from ongoing works exceeds twice the average annual expenditure incurred under the relevant budget head during the previous three financial years.
Earlier, such projects could proceed through the existing approval process, under which proposals are examined by the Finance Department and then placed before the Cabinet for approval. Under the revised system, projects crossing the threshold will first be scrutinised by the High-Powered Committee before they can move ahead through the usual approval route.
The government said it had noticed that several departments were taking up projects worth several times more than the funds available to them under the budgetary allocations. As a result, many projects were not being completed on time and their costs kept increasing. It also found that available funds were being spread across too many projects simultaneously, slowing the completion of works already underway.
While the circular does not cite any specific project, several major projects in Maharashtra have witnessed sharp cost increases over the years. The proposed Metro Line 13 connecting Bhayander and Virar has seen its cost rise from around Rs 6,900 crore to nearly Rs 17,725 crore.
In the irrigation sector, the Gosikhurd National Irrigation Project, originally estimated at Rs 372 crore, now carries a revised cost estimate of Rs 25,972.69 crore, while the Bembla irrigation project in Yavatmal has seen its cost rise from Rs 190.36 crore to Rs 4,775 crore after years of delays and revisions.
The new rules will apply to roads, highways, bridges, tunnels, railway projects, airports, dams, storage reservoirs, water supply schemes, drainage projects, flood-control works, canals, government buildings, electrification works, repair works and similar infrastructure projects.
Before approving a new project, departments will now have to consider the funds available, expenditure commitments on ongoing projects and actual spending incurred on similar works during the previous three financial years.
The government has prescribed a new financial test under which departments will have to compare the combined cost of ongoing projects and the proposed new project with the average annual expenditure incurred under the concerned budget provision during the previous three financial years.
If the combined cost of ongoing projects and the proposed new project remains within twice this average expenditure, approvals can continue through the existing process.
However, if the amount exceeds the threshold, the proposal must first be placed before the Chief Secretary-led Construction High-Powered Committee. In effect, departments will now have to account for funds already committed to ongoing projects before taking up new works. The revised norms will apply not only to new projects but also to projects seeking revised approvals after cost increases.
An official said, “The move is intended to ensure that projects already underway are completed first before departments take on fresh commitments. The revised mechanism is also expected to make it harder for departments to announce large new projects without demonstrating that sufficient funds are available and that ongoing works can be completed within a reasonable timeframe.”
The government said the objective is to ensure that ongoing projects are completed first and that limited public funds are not spread too thinly across a large number of projects. The GR also directs departments to ensure that future projects are aligned with the state’s “Viksit Maharashtra 2047” vision document.
The government resolution further states that delays in project completion are increasing costs and that some departments have been taking up works whose estimated costs are many times higher than the funds available to them.
The decision has been issued with the concurrence of the Finance Department, which conveyed its approval on May 19, 2026.
While the circular does not cite any specific project, several major projects in Maharashtra have witnessed sharp cost increases over the years. (Express File Photo) 
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