Centre restores Rs 100 crore project approval powers to Ladakh LG

Srinagar, Jan 02: In a significant development, the Union Finance Ministry has restored financial powers to the Lieutenant Governor of Ladakh. The Ministry has delegated authority for appraisal and approval of projects up to Rs 100 crore to the Administrators and LGs of Ladakh, Andaman and Nicobar Islands, Chandigarh, Dadra & Nagar Haveli and Daman & Diu and Lakshadweep.

According to a communique, the powers to LGs and administrators have been granted under the Delegation of Financial Powers Rules (DFPRs), 2024.

As per conditions set by the ministry, these powers have to be exercised by LGs/administrators in consultation with the respective UT’s Secretary (Finance) or Financial Advisor, as well as after adequate budgetary provisions are available.

The Finance Ministry directive states that delegated powers cannot be further re-delegated.

It also directs that details of all proposals sanctioned under these powers must be submitted quarterly to the Department of Expenditure through the Ministry of Home Affairs-by the end of July, October, January, and April.

As per the letter, the powers of Administrators and LGs to sanction expenditure-from in-principle approval to final approval, including appraisal-will continue under Rule 16 of DFPRs, 2024, but only after schemes are appraised and approved by the competent authorities.

This decision is particularly significant for Ladakh, where political and non-political groups had taken strong exception to the Union Government’s move to withdraw the LG’s powers to approve projects up to Rs 100 crore, centralizing authority with the MHA—(KNO)