The Union Home Ministry issued an office memorandum on January 2 under the Delegation of Financial Powers Rules (DFPRs), 2024. The order applies to Union Territories without legislatures, including Chandigarh, Ladakh, Lakshadweep, Andaman and Nicobar Islands, and Dadra and Nagar Haveli and Daman and Diu.

Earlier, in September 2025, the Centre had restricted financial powers of senior UT officials. As a result, many routine and high-value development works faced delays due to mandatory approvals from New Delhi. However, the latest decision reverses those curbs and restores local authority.

Under the revised framework, the Administrator can approve projects from the initial stage to final sanction, up to ₹100 crore, after consulting the Finance Secretary or Financial Advisor. The rule applies only when adequate budget provisions exist.

At the same time, the Centre has placed safeguards. The Administrator cannot sub-delegate these powers, and officials must submit quarterly approval reports to the Department of Expenditure through the Home Ministry.

Officials believe the move will revive stalled projects and improve governance efficiency in Chandigarh.

The post Centre Restores Financial Powers to Chandigarh Administrator appeared first on India Podcast.

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.

The post Centre Restores Financial Powers of Chandigarh Administrator, UT LGs appeared first on India Podcast.