The Maharashtra government has introduced an additional layer of financial scrutiny for infrastructure projects, following concerns that several departments were initiating works beyond their available budget capacity, leading to delays and significant cost escalations.

Under a government circular issued by the Planning Department, departments will now be required to obtain clearance from a Chief Secretary-led High-Powered Committee on Construction before taking up new projects, if the combined cost of proposed works and pending commitments on ongoing projects exceeds twice the average annual expenditure under the relevant budget head over the previous three financial years.

Earlier, infrastructure proposals followed a standard approval process involving examination by the Finance Department, followed by Cabinet approval. Under the revised system, projects crossing the prescribed financial threshold will first be vetted by the High-Powered Committee before proceeding through the usual approval route.

The government said the decision was prompted by observations that several departments were undertaking projects significantly larger than their allocated financial resources, resulting in delays, cost overruns and the spreading of funds across too many works at once, which in turn slowed project completion.

While the circular does not refer to any specific case, Maharashtra has witnessed substantial cost escalations in several major infrastructure projects over time. The Metro Line 13 project connecting Bhayander and Virar, for instance, has seen its estimated cost rise from about ₹6,900 crore to nearly ₹17,725 crore. Similarly, the Gosikhurd National Irrigation Project has escalated from an initial estimate of ₹372 crore to ₹25,972.69 crore, while the Bembla irrigation project in Yavatmal has increased from ₹190.36 crore to ₹4,775 crore due to delays and revisions.

The new framework will apply across a wide range of infrastructure sectors, including roads, highways, bridges, tunnels, railway projects, airports, dams, reservoirs, water supply schemes, drainage systems, flood-control works, canals, government buildings, electrification works, and repair projects.

Under the revised financial test, departments must account for the total cost of ongoing commitments along with proposed new projects and compare it against the average annual expenditure incurred under the relevant budget head in the previous three financial years.

If the combined outlay remains within twice the average annual expenditure, approvals may proceed under the existing system. However, if it exceeds the threshold, proposals must be placed before the High-Powered Committee for scrutiny prior to further processing.