By 
New Delhi, December 3:
The Ministry of Home Affairs (MHA) has reaffirmed that financial and administrative powers in the Union Territory of Ladakh remain fully vested with the Lieutenant Governor (LG), even as a new system aimed at improving transparency and accountability comes into effect. Official sources from the ministry confirmed that the revised mechanism strengthens governance without limiting the LG’s authority.
Under the updated framework, Administrative Approval (AA) and Expenditure Sanction (ES) for major projects will now be routed through the MHA—similar to procedures followed in other Union Territories. However, the LG continues to function as the Competent Financial Authority, retaining complete decision-making power.
“All delegated financial authority, contract approval rights, and administrative powers remain fully with the LG,” MHA officials said.
As per existing norms, the LG can approve contracts up to ₹100 crore, while contracts above ₹40 crore and up to ₹100 crore will be vetted by the Contract Committee. These rules remain unchanged.
Officials also highlighted Ladakh’s development progress, noting that the administration has completed projects worth ₹11,562 crore over the last five years, with more than 5,500 development works currently underway across the UT. They added that governance is functioning smoothly with the entire administration operating through e-office mode, ensuring quick processing of approvals and improved accountability.
The LG also retains unrestricted authority over contingent and miscellaneous expenditures within the approved budget under the General Financial Rules (GFR).
According to MHA sources, the revised system is designed to enhance coordination, standardise processes, and expedite high-value project clearances, especially in Ladakh’s strategic and border-sensitive areas. “This is a supportive administrative reform—not interference,” they emphasised.
Key development sectors—including border infrastructure, connectivity, tourism, renewable energy, and rural development—remain fully under the UT administration’s jurisdiction.
Officials reiterated that the changes aim to strengthen transparency, streamline approvals and ensure faster implementation of crucial projects while maintaining the LG’s powers entirely intact.
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