Ministry of Home Affairs restores ₹100 crore project approval powers to Ladakh L-G

Why in news

The Union Ministry of Home Affairs (MHA) restored the power to the Lieutenant Governor of Ladakh to approve projects costing up to ₹100 crore, reversing a previous withdrawal of these powers.

Background

The MHA order applies to Union Territories without legislatures, including Ladakh, Andaman and Nicobar Islands, Chandigarh, Dadra & Nagar Haveli and Daman & Diu, and Lakshadweep. The LG must consult with the Secretary (Finance) and ensure budgetary provisions are available before approval.

Facts for Prelims

• BodyMHA: Ministry of Home Affairs is the central authority responsible for the delegation of powers in UTs.
• FactProject limit: The restored power allows for the appraisal and approval of projects up to ₹100 crore.
• Act / BillDFPRs, 2024: The Delegation of Financial Powers Rules, 2024, govern the appraisal and approval of projects.
• FactReporting: Details of all proposals approved under delegated powers must be furnished to the Department of Expenditure quarterly.
• FactNon-re-delegation: The MHA clarified that the delegated powers shall not be further re-delegated.

For Mains

Q. Discuss the implications of the delegation of financial powers to the Lieutenant Governors of Union Territories without legislatures on the principle of administrative autonomy.

Dimensions to cover in your answer

• Administrative friction: Balancing the LG's executive authority with the requirement for quarterly reporting to the Department of Expenditure.
• Fiscal oversight: The role of Secretary (Finance) and Financial Advisor in ensuring budgetary discipline within UTs.
• Governance structure: The impact of non-re-delegation clauses on the efficiency of local project implementation in Ladakh.

Keywords: Delegation of Powers · Union Territory · Financial Autonomy · Administrative Oversight · Fiscal Federalism

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