Leh, Nov 28: The Ministry of Home Affairs (MHA) has taken direct charge of high-value financial approvals in Ladakh, substantially reducing the financial autonomy previously held by the Lieutenant Governor (LG) and senior UT officials.
A fresh order signed by Lieutenant Governor Kavinder Gupta earlier this week realigns Ladakh’s financial governance, making New Delhi the final authority for most major developmental and infrastructure-related spending.
Under the earlier system, the LG and top officials in the Union Territory could independently sanction projects—including public–private partnerships—up to ₹100 crore. The revised rules now withdraw that authority, requiring that all such high-value proposals be examined and approved by the MHA.
Administrative secretaries, who previously enjoyed wider financial discretion, are now restricted to approving spending only up to ₹20 crore. Any proposal exceeding that limit must be forwarded to the Centre.
While technical officers—from Assistant Executive Engineers to Chief Engineers—retain their earlier approval limits (₹1 crore to ₹10 crore), contracts valued between ₹40 crore and ₹100 crore now require explicit clearance from the MHA.
Sectors including forestry, wildlife, and infrastructure development will also require central expenditure sanctions for major works, indicating deeper oversight across departments.
The new directive reinforces strict adherence to Codal procedures, procurement manuals, the General Financial Rules (GFR), and the Delegation of Financial Power Rules (DFPR).
Although the LG has retained the authority to approve proprietary or single-tender contracts up to ₹10 crore, such approvals must now be vetted in advance by the Finance Department.
Projects already sanctioned before the order will continue under the previous delegation framework. However, all new proposals must now be routed through the Planning Development Monitoring Department before being sent to the MHA for approval.
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 GFR, DFPR 2024, and subsequent instructions from the Centre.
