The Maharashtra government has released merely Rs 1,016.21 crore against sanctioned municipal infrastructure projects worth Rs 4,968.75 crore across the state, exposing a massive gap between approvals and actual fund disbursal for urban local bodies. Even as Nagpur district received the highest overall allocation in Maharashtra, the actual release remains a fraction of the sanctioned amount.
Nagpur District Faces Severe Funding Shortfall
Official figures show Nagpur district was sanctioned projects worth Rs 1,784.83 crore, but only Rs 346.77 crore has been released so far under the latest government order, leaving over Rs 1,438 crore still pending. Of the released amount, around Rs 235 crore is expected to reach the Nagpur Municipal Corporation (NMC) for civic infrastructure works, while the remaining allocation includes funds for agencies such as the Nagpur Improvement Trust (NIT) and Public Works Department (PWD).
Civic officials said the latest tranche will mainly be used for cement roads, drainage lines, nullahs and other basic infrastructure projects across the city. However, the amount released is still significantly lower than the pending demand raised by the civic body earlier this year. In March, NMC administration wrote to the state government seeking release of nearly Rs 490 crore in pending allocations for various approved works. While the current release provides partial relief, several major projects sanctioned during 2022-23, 2023-24 and 2024-25 are still awaiting full funding support.
Ambazari Flood Restoration Works Still Awaiting Funds
One of the biggest examples remains the post-2023 Ambazari flood restoration works. After the overflow caused widespread destruction across Nagpur in 2023, the civic body proposed projects worth Rs 205 crore for reconstruction of damaged roads, strengthening of riverbank retaining walls and related protection infrastructure. Though administrative approval was granted and tenders worth Rs 158 crore were issued, actual fund release continued to face delays for months.
Officials said the state government recently released the final instalment of Rs 70 crore for the Ambazari-related works. Earlier, Rs 75 crore and Rs 14.50 crore were already sanctioned in two separate phases. Despite this, several connected urban infrastructure projects are yet to receive complete financial backing.
Funding Gap Across Maharashtra
The funding gap is visible across Maharashtra. Mumbai Suburban received only Rs 115.56 crore against sanctioned projects worth Rs 934.15 crore, Pune got Rs 141.04 crore against Rs 534.95 crore, while Thane received Rs 91.16 crore against approvals of Rs 408.45 crore.
Sources also pointed out that the government resolution imposes strict utilisation conditions before local bodies can fully use fresh allocations. Municipal corporations must first submit utilisation certificates and certify complete use of funds released during 2024-25, a process civic authorities fear could further delay ongoing projects ahead of the monsoon.
Sadashiv Shelke, chief accounts and finance officer of NMC, said the released funds have already reached the district collectorate and are expected to be transferred to the civic body shortly. He said the allocation would primarily be used for roads, drainage and other basic civic infrastructure works.
