Finance Ministry empowers UT administrators to approve projects up to Rs 100 Cr
Srinagar : In a significant development, the Union Finance Ministry has restored the financial powers of the Lieutenant Governor of Ladakh. The Ministry has delegated authority for appraisal and approval of projects up to Rs 100 crore to the administrators/LGs of Ladakh, Andaman & Nicobar Islands, Chandigarh, Dadra & Nagar Haveli and Daman & Diu, and Lakshadweep.
According to an official communiqué these powers have been granted under the Delegation of Financial Powers Rules (DFPRs), 2024.
As per the conditions laid down by the Ministry the Administrators must exercise these powers in consultation with the respective UT’s Secretary (Finance) or Financial Advisor and approvals can only be given after ensuring adequate budgetary provisions.
The letter states that the delegated powers cannot be further re-delegated.
It further states 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 communique, 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 duly appraised and approved by the competent authorities.
This decision holds particular significance for Ladakh, where political and non-political groups had objected to the Union Government’s earlier move to withdraw the LG’s authority to approve projects up to Rs 100 crore.
