Centre Restores Rs 100 Crore Project Approval Powers to Ladakh LG | Kashmir Life

SRINAGAR: The Union Finance Ministry has restored financial powers to the Lieutenant Governor of Ladakh. The Ministry has delegated authority for appraisal and approval of projects up to Rs 100 crore to the Administrators and LGs of Ladakh, Andaman and Nicobar Islands, Chandigarh, Dadra and Nagar Haveli and Daman and Diu, and Lakshadweep.

According to a communiqué,  the powers to LGs and administrators have been granted under the Delegation of Financial Powers Rules (DFPRs), 2024.

As per the conditions set by the ministry, these powers have to be exercised by LGs or administrators in consultation with the respective Union Territory’s Secretary (Finance) or Financial Adviser, and only after ensuring that adequate budgetary provisions are available.

The Finance Ministry directive states that the delegated powers cannot be further re-delegated.

It also directs 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 letter, 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 appraised and approved by the competent authorities.

This decision is particularly significant for Ladakh, where political and non-political groups had taken strong exception to the Union Government’s move to withdraw the LG’s powers to approve projects up to Rs 100 crore, centralising authority with the Ministry of Home Affairs. (KNO)