Bhopal (Madhya Pradesh): An order of the finance department has shaken the Police Housing Corporation, which constructs police stations, outposts, and residential quarters for its employees and works for other departments.
The finance department has recently issued a circular, reducing the supervision charges from 6% to 1% for government works that are less than Rs 10 crore.
Once the order is implemented, the Police Housing Corporation will be on the verge of closure.
The construction works, which the corporation carried out in 2025-26, were less than Rs 10 crore.
The corporation undertook 834 construction works worth Rs 1,187 crore, out of which only 64 works were above Rs 10 crore, and 702 works were worth Rs 269 crore. Each work was below Rs 10 crore.
The supervision charge is the main source of income of the corporation, which dashed off a letter to chief secretary Anurag Jain and director general of police Kailash Makwana.
The corporation has written that if the new supervision charge comes into force, the corporation's income will vigorously decline.
If the income declines, the number of field officials will be cut, numerous employees will lose their jobs, and the corporation will face closure.
Out of Rs 43 crore the corporation earned during the last fiscal, it received Rs 39 crore from the supervision charge.
The corporation gets 6% from the supervision charge in construction works, 3% from maintenance, and 3.54% from Sandipani Schools.
If the new supervision rates are implemented, the corporation's income will go down to Rs 29 crore.
The organisation has been making a profit for a few years, but the finance department's order will push the corporation to the brink of loss.
According to an officer, the corporation has informed the government about all aspects of the issue, and if the decision on the supervision charge is not rolled back, 414 employees may lose their jobs.
