Maharashtra makes Cabinet nod mandatory if project costs exceed three times average spend

The Maharashtra government has changed the way it grants administrative approval to development works in the state. The Planning Department issued a government order on this on October 30, 2026, putting revised guidelines into effect.

The guidelines will apply to a range of infrastructure projects, including roads, highways, bridges, railways, airports and dams. Water supply schemes, reservoirs, sewerage projects and the construction of government buildings are also covered.

The level of approval will now be decided on two factors. The first is the actual expenditure under the relevant accounting head over the previous three financial years. The second is the total financial liability created by the proposed works.

The new change amends the rules that came into force on June 5, 2026. The government had noticed that the financial commitments already made, together with the cost of newly proposed works, were rising sharply compared with the average spending of the past three years under the relevant accounting head. It has therefore been held necessary to decide on such proposals only after scrutiny at a higher level.

Under the new provision, a condition has been laid down. If the combined value of existing liabilities and the new proposal exceeds three times the average actual expenditure of the past three years, the administrative department concerned must obtain the approval of the Cabinet or the Cabinet Infrastructure Committee.

Proposals must now also carry full details. When sending a proposal for administrative approval, the department will have to state the average actual expenditure of the previous three financial years. It must also give the existing financial liability, the cost of the proposed new works, and the spending on approved and ongoing projects. The funds needed to complete unfinished works must also be stated.

In addition, a detailed analysis of the reasons for delays in completing projects and of the resulting rise in costs will have to be submitted with the proposal.

In cases of revised administrative approval, directions have also been issued to follow the instructions of the Finance Department dated June 2, 2026. The government has also said that all proposals for development works must be in line with the goals and provisions of the "Viksit Maharashtra-2047" vision document.

Following this decision, financial aspects will be examined more closely before administrative approval is given to high-cost development projects. The departments concerned will have to explain, with full information, the rising cost of projects, delays in works and the reasons behind them.