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Pune Development Works Face Funding Pause

Five months after Maharashtra initiated a digital overhaul of constituency development funding in Pune, no fresh disbursements have been released under the new e Samarth portal, leaving legislators and contractors navigating financial uncertainty as the fiscal year nears its close. The e Samarth portal was introduced as a pilot in Pune district to digitise the MLA Local Area Development (MLALAD) and Hilly Area Development schemes. 

The objective was to route approvals, documentation and payments through a single monitored platform, replacing fragmented manual systems. However, district officials confirm that allocations under the new mechanism have yet to reach implementing agencies. The delay has implications beyond administrative inconvenience. As of the end of January, projects worth roughly ₹48 crore across both schemes had already been executed. Officials estimate that at least ₹20 crore will be required before March to clear pending liabilities. Contractors engaged in local infrastructure works  from road repairs and drainage improvements to community facilities  are awaiting payments, raising concerns about cash flow disruptions in small and medium enterprises linked to public works.

Under the MLALAD framework, each legislator is entitled to ₹5 crore annually. For Pune’s 24 constituencies, that translates into a total allocation of around ₹120 crore. While works have continued based on earlier approvals, the transition to the e Samarth portal has not yet been matched by corresponding fund transfers into the designated banking structure. Senior administrators attribute the bottleneck to pending financial authorisations required to operationalise the dedicated account system created for the portal. Without formal budgetary release, the digital workflow cannot complete the final step   payment. This gap underscores a broader challenge in public sector digital transformation: technology readiness must align with treasury processes and institutional reform.

The e Samarth portal integrates proposal submission, technical vetting by the collector’s office, administrative sanction, fund tracking and utilisation reporting. It is designed to enable real-time monitoring, reduce paperwork and curb delays or duplication. Urban governance experts argue that such platforms are vital in fast-growing districts like Pune, where decentralised funds often finance neighbourhood-level infrastructure that supports equitable urban expansion.
Transparent and timely fund flow is particularly critical for climate-responsive projects   including stormwater upgrades, rural road resilience in hilly terrain and community assets in peri-urban areas. Delays at the financial backend risk undermining the credibility of digital governance reforms and slowing local development outcomes. With just weeks left in the financial year, district authorities are pushing for expedited clearances to ensure the pilot’s success. If resolved swiftly, the e Samarth portal could become a blueprint for statewide reform. If not, the experience may highlight the need for tighter synchronisation between digital ambition and fiscal execution in Maharashtra’s urban and regional development programmes.

Pune Development Works Face Funding Pause