Centre Restores ₹100 Crore Project Approval Powers to Ladakh Lieutenant Governor

Jammu, Jan 2: In a major administrative decision, the Union Finance Ministry has restored financial approval powers to the Lieutenant Governor (LG) of Ladakh, allowing appraisal and sanction of development projects costing up to ₹100 crore. The move is expected to ease decision making and accelerate project execution in the Union Territory.

According to an official communiqué, the Finance Ministry has delegated these powers under the Delegation of Financial Powers Rules (DFPRs), 2024. Similar authority has also been extended to the Administrators and Lieutenant Governors of Andaman and Nicobar Islands, Chandigarh, Dadra and Nagar Haveli and Daman and Diu, and Lakshadweep.

The restored powers enable LGs and Administrators to approve expenditure—from in-principle clearance to final sanction, including project appraisal subject to certain conditions. These include mandatory consultation with the UT Secretary (Finance) or Financial Advisor and the availability of adequate budgetary provisions.

The ministry has made it clear that the delegated financial powers cannot be further re-delegated. Additionally, all projects sanctioned under these provisions must be reported on a quarterly basis to the Department of Expenditure through the Ministry of Home Affairs, by the end of July, October, January and April.

The directive further states that while sanctioning authority will continue under Rule 16 of DFPRs, 2024, schemes must first be appraised and approved by the competent authorities.

The decision holds particular significance for Ladakh, where political and civil society groups had strongly opposed the earlier move to withdraw the LG’s project approval powers and centralise them with the Ministry of Home Affairs. The restoration is seen as a step towards addressing regional concerns over administrative autonomy and developmental delays.