Premium

Chandigarh’s finances under ministry’s watch now: ‘Nod needed for new projects, repair minor works can go on’

The Chandigarh Administration will now need prior MHA approval for all new projects, while minor repair works can continue. Officials say the directive may slow routine works and impact the UT’s financial powers.

4 min readNov 27, 2025 11:51 AM IST

UT Finance Secretary Diprava Lakra said, "Any new project which requires analysis or financial analysis will be sent to the ministry for appraisal and approval. However, any minor repair works can go on. Those will not suffer."

The SP said the Karjan police have launched a search for the suspects who escaped and also began verifying the documents of the security guard.

Chandigarh’s finances will now be under watch of the Ministry of Home Affairs. For, even if the Ministry of Home Affairs has recently clarified to the Chandigarh Administration that “minor repair works can go on” but senior UT officers said that they will require prior approval of the ministry for every new work or new project that is brought in Chandigarh, irrespective of the amount.

UT Finance Secretary Diprava Lakra told The Indian Express, “Any new project which requires analysis or financial analysis will be sent to the ministry for appraisal and approval. However, any minor repair works can go on. Those will not suffer.”

He added, “It can be like if we are coming up with a stadium or a flyover or a two-lane which requires analysis or financial work, approval of the ministry will have to be sought.”

However, Lakra specified that the ministry’s order “doesn’t mention anything about the amount limit”.

The Chandigarh Administration had sought clarification from the ministry as they had got intimation that the approval of all works or projects or schemes will now have to be sought from the Ministry of Home Affairs.

Chandigarh engineering wing officials had said that the directives had left them in the lurch as they are apprehending that their files may be stuck in the MHA even for minor works worth lakhs.

Citing Rule 12(2) of the Delegation of Financial Powers Rules (DFPR), 2024, the Ministry of Home Affairs had clearly specified that such powers “cannot be re-delegated” to UT administrators or their departments.
So far, the Chandigarh officers had powers to grant administrative approvals to projects or allotment of tenders. Any major project otherwise would go to UT Administrator through Chief Secretary for approval.

Story continues below this ad

Vinod Vashisht, a local resident, said, “Such a decision by the MHA seems to have been taken because of wastage of hundreds of crores rupees of public funds due to lack of proper feasibility studies or wrong selection of project proponents like recent cases of 24×7 pilot water supply project or never-ending legacy waste clearance works or years of delay in city’s new waste processing selection of technology.”
R K Garg, president of Second Innings Association, said, “। think the Central government is not able to maintain clear policy about Chandigarh. otherwise such hasty decisions even on minor policies matters is creating confusion even though Administrator is sitting right at the head of UT. This shows lack of faith in its own set-up.”

Financial powers

The financial powers rested with Chandigarh Administration officers earlier with Chief Secretary being allowed approval of tenders upto Rs 100 crore and secretaries upto Rs 30 crore.
However, the Finance Secretary says, “Minor works don’t require appraisal. But any new project, irrespective of any amount, shall have to be routed through the ministry for prior approval.”

Chandigarh budget

Chandigarh gets a budget of nearly Rs 7,000 crore. This year, Chandigarh got an increase of just 7.21 per cent in the budget for financial year 2025-26.

Chandigarh was allocated a budget of Rs 6983.18 crore for 2025-26. Of this, Rs 6,185.18 crore was received under the revenue head while Rs 798 crore was received under the capital head. There had been an increase of Rs 469.56 crore from that of last year. This was 7.21 per cent more than the budget estimates of 2024-25 which was last year.

Hina Rohtaki

Hina Rohtaki is a Special Correspondent at The Indian Express, based in Chandigarh. She is one of the most prominent journalists covering the Chandigarh Administration, civic issues, and the unique political status of the Union Territory. Professional Background Experience: She has been in the field for over a decade and is known for her investigative reporting on administrative waste and urban governance. Awards: She is a recipient of the prestigious Ramnath Goenka Excellence in Journalism Award, which was presented to her by the President of India in January 2020. She was also awarded the Jethmalani prize (The Will of Steel Awards) in 2025 in the Empowerment category for a series of articles that highlighted the struggles of Covid widows. Core Beat: Her primary focus is the Chandigarh administrative structure, the Union Territory's financial management, and urban development projects. Recent Notable Articles (Late 2025) Her recent work highlights a focus on government accountability, administrative expenditures, and civic trends: 1. Investigative & Financial Reporting "Fuelling power: Senior UT IAS officers guzzled petrol worth Rs 30 lakh in 2 yrs" (Dec 14, 2025): An investigative report detailing the high fuel bills of top bureaucrats, including the Finance Secretary and Chief Secretary’s staff. "Admn spends Rs 1.5 crore on dismantling road railings and fixing again after increasing height" (Dec 8, 2025): Highlighting administrative waste on "non-viable" solutions for pedestrian control. "Chandigarh’s finances under ministry’s watch now" (Nov 27, 2025): Reporting on the new requirement for MHA approval for all new projects in the UT. 2. Governance & Constitutional Status "What will it mean for Chandigarh if it is brought under Article 240?" (Nov 24, 2025): An "Explained" piece on the potential constitutional shift that would grant the President more power over the UT's governance. "MP Manish Tewari moves Bill seeking directly elected Mayor with 5-year tenure" (Dec 6, 2025): Covering the legislative push to reform Chandigarh's municipal leadership structure. "No proposal to increase Mayor's term in Chandigarh by 5 years: Centre" (Dec 10, 2025): Reporting on the Union government's response to demands for a longer mayoral term. 3. Urban Infrastructure & Environment "Chandigarh admn cuts power to India's tallest air purifier, asks firm to dismantle it" (Nov 17, 2025): A critical report on the failure of a high-cost environmental project deemed "of no use" by experts. "UT rethinks 24/7 water supply project as costs soar" (Nov 26, 2025): Detailing the financial challenges and delays in modernizing the city's water network. "Centre 'obfuscating, covering up' MC's shifting deadlines for clearing Dadu Majra dump" (Dec 12, 2025): Reporting on the ongoing controversy surrounding the city's major waste dump. 4. Lifestyle & Local Trends "Chandigarh turns into a Thar city as women fuel the surge" (Dec 2, 2025): A feature on a unique automotive trend in the city, with a record 600 registrations by women drivers this year. "After fivefold spike in 2023, EV sales struggle to pick pace in Chandigarh" (Dec 2, 2025): Analyzing the slowdown in electric vehicle adoption despite previous surges. Signature Beat Hina is known for her meticulous tracking of RTI (Right to Information) data to expose administrative inefficiency. Her "Ground Zero" reporting on the Dadu Majra garbage dump and her scrutiny of the Chandigarh Smart City projects have made her a key figure in the city’s civil society discourse. X (Twitter): @HinaRohtaki ... Read More

Stay updated with the latest - Click here to follow us on Instagram

Tags:
chandigarh

Loading Recommendations...

Apr 22: Latest News

Live Blog