Delhi govt sets up ₹1,400 crore CM Fund to plug infrastructure gaps

Following the cabinet’s approval, the planning department has issued detailed guidelines for implementation

In a bid to address infrastructure shortfalls and improve public amenities across the national capital, the Delhi government has established the Chief Minister Development Fund (CMDF) with a corpus of ₹1,400 crore for the financial year 2025–26. The initiative, cleared by the Delhi cabinet last week, is aimed at supporting localised, high-impact development works that complement existing schemes but fall outside their scope.

LG VK Saxena, chief minister Rekha Gupta with other leaders present the first PNG connection to a beneficiary during the launch of PNG connections in 111 villages of Delhi in Dwarka on Thursday. (HT Photo)

Following the cabinet’s approval, the planning department has issued detailed guidelines for implementation. The fund is intended to be a flexible and responsive mechanism for infrastructure development at the community level.

Documents reviewed by HT stated, “The Chief Minister Development Fund is a new initiative of the Delhi government intended to supplement the capital/infrastructure needs of Delhi. The scheme CMDF aims to address the critical gaps in the existing frameworks for development by providing a dynamic, flexible mechanism for local-level development, complementing and enhancing existing programmes rather than duplicating them.”

The scheme sets a ceiling of ₹10 crore per project, although chief minister Rekha Gupta retains the discretion to relax this cap in exceptional circumstances.

CM Gupta had first announced the initiative during her budget presentation on March 25, noting that the CMDF would allocate funds to support and strengthen development efforts across the city. “The scheme will essentially complement the efforts already made under other schemes and initiatives of the government,” she said at the time.

A senior official said that the scheme will address localised development needs and ensure flexible resource allocation. “The scheme will focus on immediate, community-specific projects not covered by large-scale infrastructure schemes, such as development of public parks, footpaths, approach roads, hostels for working women, and the strengthening of common areas in slum clusters. It will also cover the renovation and expansion of community halls, sports complexes, and schools,” the official said, requesting anonymity.

“The aim is to provide quick responses to emerging issues and urgent developmental priorities. It will also complement existing schemes by addressing overlooked areas like minor infrastructure and social welfare. Under the scheme, projects that foster environmental sustainability and resilience will be prioritised,” the official added.

As per the CMDF guidelines, each project proposal must include a need assessment and a comprehensive execution plan. The implementing department—for example, the Delhi Urban Shelter Improvement Board (DUSIB)—will be required to submit a detailed write-up explaining the necessity of the project to the planning department, which serves as the nodal implementing agency.

“The planning department, after due scrutiny, will submit the proposals to the CM for approval. Once approved, the department concerned can engage agencies to prepare estimates and execute the project. Administrative secretaries will be responsible for planning, timely execution, regular monitoring, and ensuring no cost escalation,” the guidelines state.

Funds will be released in four instalments—10%, 30%, 30%, and 30%—based on work progress and submission of completion certificates. Monitoring responsibilities will rest with the implementing departments.

In addition, all projects with a cost of ₹10 crore or more will be subject to third-party evaluation by the respective departments. The planning department also reserves the right to independently evaluate any project under the scheme to ensure accountability and efficient utilisation of public funds.