Big projects shift to Delhi: MHA redefines LG Ladakh’s financial control

Kargil, Nov 28: In a major restructuring of Ladakh’s administrative and financial framework, the Ministry of Home Affairs (MHA) has assumed direct control over high-value financial approvals in the Union Territory, significantly reducing the powers earlier vested in the Lieutenant Governor and senior officials.

The shift, formalised through an order signed this week by Lieutenant Governor Kavinder Gupta, giving reference to MHA direction, places New Delhi at the centre of decision-making for most major developmental and infrastructure projects.

The order effectively redraws Ladakh’s financial governance map. Previously, the LG and top UT administrators could independently approve projects—including public–private partnerships—up to Rs 100 crore. That autonomy has now been withdrawn, with the MHA mandated to clear all proposals above the newly restricted thresholds. Administrative secretaries, who could earlier sanction larger sums, are now limited to approvals up to Rs 20 crore, with any expenditure beyond that requiring direct clearance from the Centre.

The most notable change concerns Heads of Departments, particularly Deputy Commissioners who function as Chief Executive Officers of the Hill Development Councils. Their authority to sanction works up to Rs 5 crore has been removed and shifted to the MHA. The move comes at a time when the Leh Hill Council remains dissolved following the end of its term, its powers temporarily assigned to the Deputy Commissioner of Leh. The Kargil Hill Council, however, continues to function.

According to the notification, the revised delegations are issued under Rule 12(3) of the Delegation of Financial Power Rules 2024 and remain subject to the General Financial Rules and subsequent Government of India instructions. It reiterates that no procurement process can begin without valid administrative approval and a matching budgetary provision. While ongoing projects sanctioned before the new order will continue under the earlier guidelines, all fresh proposals must now be routed through the Planning Development Monitoring Department before reaching the MHA—effectively centralising Ladakh’s future development agenda in New Delhi.

The move has drawn concern from Ladakh’s elected and grassroots representatives, who fear potential delays in project execution.

Chief Executive Councillor of the Ladakh Autonomous Hill Development Council (LAHDC) Kargil, Dr Mohd Jaffar Akhoon, told Greater Kashmir that the "curtailment of financial powers would adversely affect development works across the region".

He said he had written to the Union Home Minister conveying apprehensions about the impact of the new framework, especially given Ladakh’s extremely short working season due to harsh winters and weather constraints. “Routing everything through the MHA will slow down both sanctioning and approvals,” he said.

Former CEC LAHDC Leh, Adv Tashi Gyalson, did not respond to calls from this newspaper, while Ladakh MP Haji Haneefa Jan could not be reached for comment.