LEH JAN 2 : The Union Finance Ministry has reinstated financial authority to the Lieutenant Governor of Ladakh, allowing the administrator to approve development projects worth up to ₹100 crore. This delegation extends to administrators and LGs of other Union Territories including Andaman and Nicobar Islands, Chandigarh, Dadra & Nagar Haveli and Daman & Diu, and Lakshadweep.
The financial powers have been delegated under the Delegation of Financial Powers Rules (DFPRs), 2024. The restoration covers all stages from in-principle approval to final sanction, including project appraisal. However, LGs and administrators must exercise these powers in consultation with their respective UT’s Secretary (Finance) or Financial Advisor and ensure adequate budgetary provisions are available.
The ministry has imposed strict conditions on the delegated authority. The powers cannot be further re-delegated to subordinate officers. Additionally, 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.
This move reverses the Union Home Ministry’s November 2025 decision that had withdrawn the Ladakh LG’s authority to sanction projects up to ₹100 crore. That centralization had drawn strong criticism from political and non-political groups in Ladakh, who argued it hampered administrative efficiency and delayed development initiatives. The earlier withdrawal had also stripped administrative secretaries of their ₹20 crore approval powers and removed Chief Engineers’ and Deputy Commissioners’ sanctioning authority for works ranging from ₹3 crore to ₹10 crore.
