VINOD BHAT
NEW DELHI, Jan 2: In a significant administrative and financial reform aimed at expediting development works in Union Territories without legislatures, the Union Ministry of Home Affairs (MHA) has delegated enhanced financial powers to the Administrators and Lieutenant Governors (LGs) of select UTs, including Ladakh. The delegation allows appraisal and approval of projects involving expenditure of up to ₹100 crore under the Delegation of Financial Powers Rules (DFPRs), 2024.
The order, issued by the UT Division of the Ministry of Home Affairs from New Delhi on January 2, 2026, applies to the Union Territories of Andaman and Nicobar Islands, Chandigarh, Dadra and Nagar Haveli and Daman and Diu, Ladakh, and Lakshadweep. The communication has been addressed to the Chief Secretaries and Advisors to the Administrators of the concerned UTs.
According to the official letter, the competent authority has approved the delegation of powers for appraisal and approval of projects up to ₹100 crore to the Administrators and LGs of these Union Territories, subject to a clearly defined set of financial and procedural safeguards. The move is expected to substantially reduce delays in project execution by minimizing repeated referrals to central ministries for approvals.
As per the conditions laid down, these powers shall be exercised by the Administrator or LG of the UT in consultation with the Secretary (Finance) or the Financial Adviser of the respective Union Territory. The order further mandates that adequate budgetary provisions must be available before any project is approved. Importantly, the delegated powers cannot be re-delegated further, ensuring accountability remains at the highest administrative level within the UT.
To strengthen oversight and transparency, the MHA has directed that details of all proposals approved under these delegated powers must be furnished to the Department of Expenditure through the Ministry of Home Affairs on a quarterly basis. These reports are to be submitted by the end of July, October, January, and April each year.
The order also clarifies that the powers of Administrators and LGs to sanction expenditure—from in-principle approval to final approval, including appraisal—will continue under Rule 16 of the DFPRs, 2024. However, such approvals will be valid only after appraisal and approval of schemes by the concerned authorities, in line with the Department of Expenditure’s Office Memorandum No. 24(35)/PF-II/2012 dated August 5, 2016.
Notably, this delegation of powers has been issued in supersession of an earlier order dated September 19, 2025, thereby updating and strengthening the financial autonomy framework for UT administrations. The latest order has also been issued with the approval of the Department of Expenditure, Ministry of Finance, Government of India, vide Office Memorandum dated December 26, 2025.
For Ladakh in particular, the decision is being viewed as a timely and strategic intervention. With the region facing unique geographical, climatic, and infrastructural challenges, quicker financial approvals are expected to play a crucial role in accelerating development projects related to connectivity, health, education, renewable energy, and basic infrastructure.
The order gains added significance in the context of Ladakh’s current administrative focus. Lieutenant Governor Kevinder Gupta has repeatedly emphasized the need to improve Ladakh’s developmental index and bridge long-standing gaps in infrastructure and public service delivery. Known to be particular about outcome-oriented governance, the LG has stressed efficient utilization of funds and timely execution of projects as key instruments for improving socio-economic indicators in the high-altitude region.
Officials believe that with financial powers now vested locally up to ₹100 crore, the Ladakh administration will be better positioned to translate developmental priorities into actionable projects without procedural bottlenecks. The enhanced autonomy is expected to align well with the LG’s vision of balanced and sustainable development, especially in remote and border areas where delays can significantly escalate costs and hamper service delivery.
Overall, the MHA’s decision marks a decisive step towards empowering UT administrations, strengthening cooperative federalism, and ensuring that development works are executed with speed, accountability, and regional sensitivity—particularly in strategically important and geographically challenging regions like Ladakh.
