Near Total Financial Delegation in CPWD to Speed Up Project Implementation Financial Power of Regional Offices Enhanced from Rs.30 Cr to Rs.200 Cr 99 % of Tenders to be Finalized at Regional Level

In a major decentralization initiative, the power of accepting and approving tenders have been delegated to Regional Offices of Central Public Works Department (CPWD) to speed up implementation of projects. After an extensive review of factors resulting in delayed implementation of projects by CPWD, the Minister of Urban Development Shri M.Venkaiah Naidu has delegated to Regional Work Boards financial powers to accept and approve tenders up to a value of Rs.200 cr. This amounts to substantial decentralization given that the existing power of Regional Offices is to approve tenders up to only Rs.30 cr. Further to this delegation, only less than 1% of project proposals would come to the Central Works Board of CPWD.

CPWD is currently processing a total of 3,832 proposals for finalization of tenders. Of these 99% would now be decided at regional level instead of coming to CPWD Hqrs in New Delhi. Of the 1,928 works in progress currently costing a total of Rs.20,370 cr, only 16 tenders were of the value of more than Rs.200 cr each, giving an indication of the impact of financial delegation approved by the Minister.

While addressing the over 30,000 employees of CPWD through video conferencing on 9.9.2014, Shri Venkaiah Naidu desired that most of the decision making and financial approvals should be at the level of Regional Offices of CPWD for speedy execution of works. The latest financial delegation comes in pursuance of this direction of the Minister of Urban Development.

AAR February 13, 2015