PWD withdraws power to sanction cost escalation
    Date :27-Oct-2026
 
Public Works Department
 
 
Staff Reporter :
 
The move comes post objection by the Finance Department
 
Putting a tight leash on cost escalation, Public Works Department (PWD) has withdrawn the powers vested with Regional Officers for condoning additional cost for sub-items in the sanctioned projects, especially those relating to road works. The move comes post objection raised by the Finance Department at repeated cost overruns proposals, which said needs to be done away with as there is need to bring in financial discipline.
 
The internal circular issued by PWD states that henceforth any additional requirement of sanction for bills that are over and above the sanctioned outlay must come with change of scope mandate. But prior to that it is laid down that prior to that accountability must be fixed as to why cost escalated, as same relates to poor survey and lower allocation on part of field units. Maharashtra Government is facing strain on public resources owing to host of welfare measures and dwindling income sources. Hence a department wise review is on identifying the heads to plug the revenue lekages. PWD in its report outlined that its outlay is defined under two major heads, original construction and repairs plus preservation for road works. For each construction proposal, administration sanction is must, excluding repair works, and projects are undertaken after technical scurrility and tender process. So once the tender is awarded, it is understood that it would be completed within the sanctioned budget and thus it is primary responsibility of Regional Officers and Controlling Officers to prevent cost overrun.