No More 10% Extra Allowance for Tribal Belt Infrastructure: Maharashtra Government Scraps Special Surcharge

Public Works Department Cancels Additional Construction Rates Citing Improved Regional Infrastructure and Fiscal Savings Policy

Mumbai, August 14: In a major administrative policy shift, the Maharashtra Public Works Department (PWD) has officially scrapped the 10% additional surcharge previously granted for construction projects in tribal-dominated regions. Moving forward, public infrastructure developments in tribal belts will be calculated using standard state schedule rates, bringing them on par with non-tribal areas across the state.

Under Section A General Note (ii)(d) of the 2022–23 State Rate Schedule, the PWD had allowed a special provision incorporating a 10% increase in estimates for works undertaken in tribal areas to offset remote location challenges. However, during a high-level review meeting chaired by the then Deputy Chief Minister (Finance, Planning, and State Excise), it was observed that tribal regions now possess significantly improved ground facilities and connectivity. Consequently, continuing the 10% hike was deemed unnecessary, especially in alignment with the government’s ongoing fiscal austerity and savings drive.

The Tribal Development Department was subsequently asked to review the proposal and provide its official feedback. The department concurred with the assessment, stating that given the current infrastructure availability in tribal areas and the state’s expenditure control policy, the additional 10% allowance was no longer required.

Following these recommendations, the Public Works Department issued a government circular on August 13, 2026, officially revoking the provision. This decision ends the practice of inflated tender estimates for tribal areas, ensuring standard rate applications and preventing excess financial outflow from the government treasury.