MP News: Finance Department Stops Arbitrary Supervision Charges Taken By Construction Agencies

MP News: Finance Department Stops Arbitrary Supervision Charges Taken By Construction Agencies

The finance department has banned arbitrary supervision charges by government construction agencies, including PWD, Water Resources, Narmada Valley Development Authority, and others. For projects below Rs 10 crore, no charge from departments and 1% from the state government will apply. Projects over Rs 10 crore will incur 3% from departments and 6% from organisations.

Staff ReporterUpdated: Friday, March 27, 2026, 10:30 PM IST
article-image
MP News: Finance Department Stops Arbitrary Supervision Charges Taken By Construction Agencies |

Bhopal (Madhya Pradesh): The finance department has imposed a ban on different construction departments and organisations taking arbitrary supervision charges.

The agencies, dealing with construction work, take separate supervision charges from various government organisations and departments.

The government is incurring a heavy loss because of arbitrary supervision charges taken by the agencies whom the finance department has reined in.

According to an order issued by the additional chief secretary of the finance department, Manish Rastogi, PWD, Water Resources Department, Narmada Valley Development Authority, Road Development Corporation, Rural Development Department, Housing Development Corporation, and other government construction agencies ink pacts with the government and other organisations for construction work.

But these agencies take separate supervision charges, which cause confusion. The finance department fixed rates.

For the works below Rs 10 crore, supervision charges will not be taken from the government departments.

Only one percent supervision charge will be taken from the state government. For the works worth over Rs 10 crore, three per cent charges will be taken, and six percent charges will taken from the organisations.

The charges will include the expenses made by the construction agencies. The supervision charges, mentioned in the order, will be applicable after April 1, the order says.