Changes in Financial Powers in Ladakh

The Ministry of Home Affairs (MHA) has recently amended the financial governance structure in Ladakh, affecting the role and authority of the region's lieutenant governor.

Key Changes

• Approval Authority:
  • The Union Home Ministry will now approve schemes/projects up to ₹100 crore, including those under the public-private partnership model.
  • The lieutenant governor's power to approve administrative and expenditure decisions up to ₹100 crore is now transferred to the MHA.
  • Administrative secretaries previously had autonomy up to ₹20 crore, which is now under the purview of the MHA.
• Operational Impact:
  • Chief engineers, department heads, and deputy commissioners, who also function as CEOs of the Ladakh Autonomous Hill Development Councils in Leh and Kargil, no longer have the authority to sanction individual projects ranging from ₹3 crore to ₹10 crore.

Reaction from Local Representatives

• Concerns of Disempowerment: Local leaders believe this move further disempowers the Ladakh region and could slow down development.
• Criticism: Apex Body Leh co-chairman, Cherring Dorjay, stated that decisions made from Delhi are disconnected from the regional needs and will lead to ineffective administration.
• Call for Reassessment: Sajjad Kargili from the Kargil Democratic Alliance requested a review of the order.