Ministry of Home Affairs restores Rs 100 crore project approval powers to Ladakh LG

The Union Ministry of Home Affairs (MHA) on Friday restored the power of the Lieutenant Governor (LG) of Ladakh to appraise and approve projects costing up to ₹100 crore under the Delegation of Financial Powers Rules (DFPRs), 2024, after having suspended these powers last month as part of a broader review of financial oversight mechanisms in union territories.

In an official order, the MHA said the competent authority has approved the delegation of powers for appraisal and approval of projects up to ₹100 crore to administrators and LGs of union territories without legislatures, including Ladakh. The delegation also applies to Andaman and Nicobar Islands, Chandigarh, Dadra and Nagar Haveli and Daman and Diu, and Lakshadweep.

The powers had been withdrawn in December 2025 amid efforts by the Centre to tighten financial controls and ensure closer scrutiny of high-value projects under the updated DFPRs, 2024. The move followed a review aimed at strengthening compliance with Finance Ministry guidelines and ensuring budgetary discipline in the sanction of major schemes.

According to the fresh order, the LG will exercise the restored powers in consultation with the finance secretary or financial advisor equivalent to the union territory , and approvals will be subject to the availability of adequate budgetary provisions . The ministry has also made it clear that the delegated powers shall not be further re-delegated .

To enhance transparency and accountability, the MHA said details of all projects approved under the delegated powers must be furnished to the Department of Expenditure through the ministry on a quarterly basis . It further clarified that the LG’s authority to sanction expenditure on schemes from in-principle approval to final approval will continue under Rule 16 of DFPRs, 2024 , but only after appraisal and approval by the concerned authorities in accordance with existing Finance Ministry norms.

The order, signed by Under Secretary to the Government of India Lendup Sherpa, stated that the restoration of powers has been issued in supersession of an earlier order dated September 19, 2025 , and has received approval from the Department of Expenditure, Ministry of Finance.

Officials said the restoration reflects the Centre’s attempt to balance faster decision-making and developmental requirements in Ladakh with strengthened financial oversight , ensuring that project approvals remain efficient while adhering to fiscal safeguards.