The Centre has restored the financial powers of the Chandigarh Administrator and the Lieutenant Governors of various Union Territories, reversing an earlier decision to withdraw these authorities.
Under the revised arrangement, Administrators and LGs can now approve development projects worth up to Rs. 100 crore without seeking prior clearance from the central government. The move aims to speed up decision-making and improve administrative efficiency in Union Territories.
The Ministry of Home Affairs (MHA) issued formal orders on Friday to implement the decision. Officials said the step would help clear pending projects and reduce procedural delays.
Moreover, the restored powers will apply not only to Chandigarh but also to Andaman and Nicobar Islands, Dadra and Nagar Haveli, Daman and Diu, and Lakshadweep. The Centre expects the decision to strengthen local governance and ensure smoother execution of infrastructure and public welfare projects.
Earlier, the withdrawal of financial powers had slowed approvals for several development works. As a result, UT administrations had raised concerns about delays in essential projects related to urban infrastructure, public utilities, and social services.
Therefore, the Centre’s decision comes as a relief to UT administrations. Officials believe it will improve coordination between local authorities and the central government.
Meanwhile, sources in the administration said the move reflects the Centre’s trust in UT leadership and its commitment to faster development. The restored authority will also help administrators respond quickly to local needs and emerging challenges.
Overall, the decision marks a significant step toward empowering UT administrations while maintaining oversight at the national level.
