Centre restores Chandigarh Administration's powers, retains control over new projects

The Ministry of Home Affairs (MHA) has restored the UT Administration’s authority to carry out minor civil, electric and maintenance works, while retaining the power over new projects and schemes.

The MHA today issued a clarification on the financial and administrative powers delegated to Union Territories, including Chandigarh, with regard to notifications issued on May 20 and September 19.

In the fresh notification, the MHA has stated that there is no need for the UT Administration to send proposals for minor civil and electric works, besides repair and maintenance, to the ministry for approval.

However, all proposals for appraisal and approval of new projects and schemes shall be submitted to the ministry for necessary approvals. The ongoing works approved under any project or scheme will not be impacted, stated the MHA.

In an earlier order, the financial powers of officers, including Heads of Departments (HoDs), Chief Engineers, Administrative Secretaries and the Chief Secretary, were curtailed and vested with the MHA.

The order had created ambiguity, as the UT Administration was to take prior approval from the MHA for works worth Rs 1.5 crore and above. Effectively, all financial powers delegated to local officers were withdrawn and transferred back to the Centre. While ongoing projects remained unaffected, all new projects, including as routine as whitewash, were stalled under the revised rules.

As the work virtually came to a standstill, the UT Engineering Department took up the matter with Punjab Governor and UT Administrator Gulab Chand Kataria, who then discussed the issue with the higher authorities in the MHA. After which, the MHA issued a fresh notification, clarifying the powers of the UT Administration.

On the directions of the MHA, the UT Administrator had revised the financial powers in September, overturning the May order that had enhanced the financial powers of UT officers. The Centre had again assumed control over the sanctioning and tendering of most schemes and projects.

Earlier, the Administration had powers to approve projects up to Rs 100 crore. But after the September order, even relatively small expenditures of over Rs 1.5 crore needed MHA’s clearance. The technical sanction powers for special repairs and original works were not altered. However, for the works involving negotiations or consultancy, the ministry’s approval was mandatory. For normal tenders without negotiations, the Chief Secretary had the financial powers up to Rs 100 crore, the Secretary Rs 30 crore and heads of departments Rs 4 crore.

The May 9 order had enhanced the powers of heads of departments from Rs 2 crore to Rs 4 crore for open or limited tenders and for secretaries, from Rs 15 crore to Rs 30 crore. All these enhancements have now been reversed, except for Public-Private Partnership (PPP) projects, which are not covered under the new instructions.