LEH: In a major shift in Ladakh’s administrative structure, the Ministry of Home Affairs (MHA) has assumed control over most high-value financial approvals for the Union Territory, effectively curtailing the authority previously exercised by the Lieutenant Governor (LG) and senior local officials. The new order, signed by Lieutenant Governor Kavinder Gupta on Monday, recasts Ladakh’s financial governance by routing nearly all major expenditure and project sanctions through New Delhi.
Under the earlier framework, the LG and top Ladakh administrators could independently approve projects—including public–private partnerships—up to ₹100 crore. The revised delegation withdraws that autonomy, mandating that all such proposals be cleared directly by the MHA. Administrative secretaries are now capped at approving expenditures up to ₹20 crore, with anything above that threshold requiring central vetting.
The directive also reshapes contract approvals in infrastructure and public works. While existing limits for technical officers—from ₹1 crore for Assistant Executive Engineers to ₹10 crore for Chief Engineers—remain intact, any contract valued between ₹40 crore and ₹100 crore cannot proceed without an explicit green light from the MHA. Departments such as forestry and wildlife will similarly rely on central expenditure sanctions for high-value operations, signalling tighter supervision of sectoral spending.
Procurement norms have been reinforced as well. Officials must strictly follow Codal procedures, procurement manuals, and the General Financial Rules, alongside the Delegation of Financial Power Rules. Although the LG retains authority to approve proprietary and single-tender contracts up to ₹10 crore, such clearances now require prior consultation with the Finance Department.
The order clarifies that ongoing projects sanctioned before the new directive will continue under the previous delegation structure. However, all fresh proposals must be routed through the Planning Development Monitoring Department before being forwarded to the MHA, effectively centralising Ladakh’s future development agenda.
Citing instructions issued by the MHA, the notification states that the revised powers are exercised under Rule 12(3) of the Delegation of Financial Power Rules 2024 and remain subject to the General Financial Rules, the 2024 DFPR, and subsequent Government of India instructions. It also underscores that no procurement can begin without valid approval and requisite budgetary provision.
The overhaul marks a consequential shift in Ladakh’s administrative landscape, with the Union Home Ministry now positioned as the principal arbiter of major financial decisions shaping the region’s trajectory.
