CM Omar announces major reforms in constituency development fund

Srinagar: Jammu and Kashmir Chief Minister Omar Abdullah on Wednesday announced a series of key amendments to the Constituency Development Fund (CDF) scheme, expanding the scope of works that legislators can recommend and removing several financial ceilings that previously limited developmental activities.

Chief Minister Omar Abdullah during his address in the Assembly, per news agency said the government had been reviewing the scheme for the past two months and has now approved a set of changes aimed at giving elected representatives greater flexibility to address local needs.

“We can bring some changes to this. We want to inform the House about the changes that have been approved by the government,” he said.

Key Changes in Power, PHE and Health Sectors

CM Omar informed that the ceiling under the Power Development Infrastructure category has been withdrawn. MLAs can now recommend works in this sector without any upper limit, which earlier stood at Rs. 30 lakh. Similarly, the Rs. 10 lakh ceiling for installation of solar lights has been removed.

Under the Public Health Engineering (PHE) sector, MLAs can now recommend the purchase of mobile water tankers and individual household connectivity projects. In the education sector, the purchase of school vans and buses, both three and four-wheelers, has been made permissible.

In the health sector, the purchase of wheelchairs, tricycles, and both manual and motorized electric scooters will now be allowed under the revised guidelines.

Special Provisions for Calamity Relief

Referring to the devastating floods that recently hit parts of the region, CM Omar said a one-time relaxation for MLAs to utilize up to Rs. 50 lakh from their CDF allocation for the rehabilitation of calamity-affected families. The relaxation will apply to the current financial year and 2026–27.

Additionally, MLAs from non-affected areas will be able to recommend works worth up to Rs. 10 lakh in disaster-hit constituencies or contribute to the Chief Minister’s Relief Fund, with specific directions for use in the affected areas.

Removal of Spending Restriction and Introduction of New Categories

The Chief Minister said the provision requiring MLAs to spend 80% of their CDF allocation within a financial year has been scrapped. “We have removed this provision. Now, we have not kept this 80% requirement for MLAs,” he said.

He noted that while the CDF framework will continue to draw from the Member of Parliament Local Area Development Scheme (MPLADS), certain improvements have been introduced. Temporary sheds for people affected by natural calamities like earthquakes, floods, and droughts will now be allowed under the CDF.

Grants of up to Rs. 3 lakh will be permitted for old age homes, shelters, and orphanages for purchasing bedding, utensils, books, and uniforms. Youth clubs and sports organizations can now receive similar grants for buying sports equipment through government channels.

Housing Support for Marginalized Groups

The Chief Minister also announced that up to Rs. 20 lakh from the CDF can be directed to assist the economically weaker sections, including drivers and Below Poverty Line (BPL) families, for upgrading their housing units. The funds will follow the model of the Pradhan Mantri Awas Yojana (PMAY) and will be subject to verification and scrutiny.

“These reforms are meant to make the CDF more responsive to the needs of the people and to empower MLAs to deliver targeted support where it is most required,” Omar told the House as per news agency.

The revised CDF guidelines are expected to take effect immediately after formal notification by the government.—(KNO)