The Union Ministry of Home Affairs (MHA) has restored the powers of the Lieutenant Governor (LG) of Ladakh to approve projects costing up to Rs 100 crore. This decision was announced on Friday through an official order and reverses an earlier decision that had taken away these powers.

The powers were given again under the Delegation of Financial Powers Rules (DFPRs), 2024. Along with Ladakh, the order covers other union territories without legislatures, such as the Andaman and Nicobar Islands, Chandigarh, Dadra & Nagar Haveli and Daman & Diu, and Lakshadweep.

In the official order, the MHA said, “I am directed to refer to convey the approval of the competent authority for the delegation of powers for appraisal and approval of projects up to Rs 100 crore under DFPRs, 2024, to the administrators and LGs of the union territories of Ladakh, Andaman and Nicobar Islands, Chandigarh, Dadra & Nagar Haveli and Daman & Diu and Lakshadweep, (subject to the certain condition).”

This line was part of the order signed by Lendup Sherpa, Under Secretary to the Government of India, Ministry of Home Affairs.

The decision follows a move by the MHA about a month ago, in which the ministry had withdrawn the LG’s powers to approve projects and schemes up to Rs 100 crore. At the same time, powers given to Administrative Secretaries to approve projects up to Rs 20 crore were also removed. The recent order now reverses that earlier removal.

Under the new MHA order, the LG’s powers will be used with specific conditions. The LG will have to take approval “in consultation with the Secretary (Finance)” and the Financial Advisor equivalent of the union territory concerned. The exercise of powers is also dependent on the availability of sufficient budgetary provisions.

The ministry also made it clear that “The delegated powers shall not be further re-delegated.” This means that the LG cannot pass these powers down to any other official or department below him.

The order states that every quarter, details of all proposals approved under these powers must be shared with the Department of Expenditure through the Ministry of Home Affairs. This requirement is meant to keep a formal record of how the powers are being used.

The Ministry further explained how the LG’s role in financial approvals will continue. It said that the LG’s powers to sanction expenditure on schemes, from the first approval in principle to the final sanction, will carry on under Rule 16 of DFPRs, 2024. But this can be done “only after appraisal and approval of schemes by the concerned authorities”, according to the existing finance ministry guidelines.

The recent order has been issued “in supersession of earlier order” dated September 19, 2025, meaning this new decision replaces the older one and has the approval of the Department of Expenditure, Ministry of Finance.

Officials say that the restoration of these powers is significant for Ladakh. When the powers were taken away last month, it led to reactions from political and non-political groups in the region. Many had objected to the central government’s decision to remove the LG’s financial powers and centralise decision-making in the Ministry of Home Affairs.

With this new order, the Lieutenant Governor of Ladakh can once again appraise and approve large projects up to Rs 100 crore, helping speed up work on important schemes and plans in the union territory, as long as the conditions laid out by the MHA are followed.