MHA Restores Financial Approval Powers to Ladakh LG for Projects Up to ₹100 Crore

New Delhi: The Union Ministry of Home Affairs (MHA) on Friday restored the delegation of financial powers to the Lieutenant Governor of Ladakh, allowing appraisal and approval of projects worth up to ₹100 crore under the Delegation of Financial Powers Rules (DFPRs), 2024.

In an official order, the ministry said the Centre has approved similar financial powers for Administrators and Lieutenant Governors of Union Territories without legislatures. These include Ladakh, Andaman and Nicobar Islands, Chandigarh, Dadra and Nagar Haveli and Daman and Diu, and Lakshadweep.

The order, issued by MHA Under Secretary Lendup Sherpa, stated that the approval of the competent authority has been granted subject to specific conditions. The decision comes nearly a month after the Centre had withdrawn the Ladakh Lieutenant Governor’s authority to clear projects up to ₹100 crore, along with the powers of Administrative Secretaries to approve projects costing up to ₹20 crore.

As per the revised directive, the Lieutenant Governor will exercise the restored powers in consultation with the Secretary (Finance) or an equivalent Financial Advisor of the concerned Union Territory. All approvals will be subject to the availability of adequate budgetary provisions.

The ministry clarified that these delegated powers cannot be further re-delegated. It also directed that details of all projects approved under this provision must be submitted quarterly to the Department of Expenditure through the MHA.

The order further noted that the Lieutenant Governor’s authority to sanction expenditure on schemes — from in-principle approval to final approval — will continue under Rule 16 of the DFPRs, 2024. However, such sanctions can be issued only after proper appraisal and approval in accordance with the Ministry of Finance’s guidelines.

The MHA said the latest notification supersedes an earlier order dated September 19, 2025, and has been issued with the concurrence of the Department of Expenditure under the Ministry of Finance.

By Rajeev Sharma

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