Centre restores financial powers to Chandigarh Administrator, enables approval of projects upto Rs 100 crore
Babushahi Bureau
Chandigarh, January 5, 2026: The Centre has restored and delegated financial powers to the Administrator of Chandigarh, including the authority to sanction and approve development projects up to ₹100 crore, ending months of administrative uncertainty and enabling faster execution of key works in the Union Territory.
The decision was conveyed in an office memorandum issued by the Union Home Ministry (UT Division) on January 2, under the Delegation of Financial Powers Rules (DFPRs), 2024. The move applies to Union Territories without legislatures — including Chandigarh, Andaman and Nicobar Islands, Dadra & Nagar Haveli and Daman & Diu, Ladakh and Lakshadweep — and is expected to speed up local decision-making on infrastructure and public projects.
Officials said the restoration supersedes an earlier order from September 2025, when the Ministry had curtailed financial powers of senior officers and centralized approvals for most new works, leading to delays in routine and high-value projects in Chandigarh.
Under the new framework, the UT Administrator, in consultation with the Finance Secretary or Financial Advisor, can sanction expenditure from in-principle approval to final approval for projects up to ₹100 crore, provided adequate budgetary provisions are available.
The delegated powers cannot be further sub-delegated, and details of approvals must be submitted on a quarterly basis to the Department of Expenditure through the Home Ministry.
The restoration of financial authority is widely seen as a positive step toward reviving stalled developmental activities in the city. In recent months, officials had flagged that earlier restrictions had slowed down routine works and new project proposals due to mandatory clearances from the Ministry in New Delhi.