Kargil, Jan 2: The Union Ministry of Home Affairs has reinstated financial authority to the Lieutenant Governor of Ladakh, allowing the administrator to approve development projects worth up to Rs 100 crore—reversing a decision made just over a month ago.
The delegation, which extends to administrators and LGs of other Union Territories including Andaman and Nicobar Islands, Chandigarh, Dadra & Nagar Haveli and Daman & Diu, and Lakshadweep, was notified through an official order issued on Friday.
The order comes a month after the MHA had withdrawn the existing delegated powers of the Lieutenant Governor of Ladakh to approve schemes and projects up to Rs 100 crore, as well as the powers of Administrative Secretaries to approve projects up to Rs 20 crore.
On November 28, 2025, the ministry had centralised high-value financial approvals in Ladakh for projects up to Rs 100 crore, significantly reducing the discretionary powers of the LG. The move drew sharp criticism from various political parties and civil society groups in the Union Territory.
In the fresh official order, Under Secretary to the Government of India (MHA) Lendup Sherpa stated that the competent authority has approved “the delegation of powers for appraisal and approval of projects up to Rs 100 crore under Delegation of Financial Powers Rules (DFPRs), 2024, to the administrators and LGs” of union territories without legislatures, including Ladakh.
However, the restored powers come with specific conditions. The Lieutenant Governor must exercise these powers “in consultation with the Secretary (Finance) or the Financial Advisor equivalent of the respective union territory,” and subject to the availability of adequate budgetary provisions.
The ministry also clarified that “the delegated powers shall not be further re-delegated.”
Details of all proposals approved under the delegated powers must be furnished to the Department of Expenditure through the MHA every quarter, the order stated.
The ministry added that the powers of the Lieutenant Governor to sanction expenditure on schemes—from in-principle approval to final approval—would continue under Rule 16 of DFPRs, 2024, but “only after appraisal and approval of schemes by the concerned authorities” in accordance with existing finance ministry guidelines.
The order stated that the delegation of powers has been issued “in supersession of earlier order” dated September 19, 2025, and has been approved by the Department of Expenditure, Ministry of Finance.