MHA clarifies: Chandigarh free to locally approve repair works, purchases up to ₹100 cr

As per the latest orders, proposals up to ₹100 crore falling under ‘contract and purchase’ head – for instance purchase of buses for the CTU fleet –- are fully delegated to the UT

Nearly two months after the Ministry of Home Affairs (MHA) curtailed the financial powers of the UT administration, mandating that all project proposals be routed through the Ministry instead of being cleared locally, it has clarified that the order does not apply to the purchase of items or routine repair and maintenance works.

For the launch of major projects, such as Chandigarh Housing Board Schemes, the UT must continue to submit the proposal to Centre. (HT File)

As per the latest orders, proposals up to ₹100 crore falling under ‘contract and purchase’ head – for instance purchase of buses for the CTU fleet –- are fully delegated to the UT. Further, in cases of single-tender or proprietary article certificate (PAC) purchases up to ₹10 crore, the UT is free to take a call on its own.

Besides this, it can also decide on minor civil and electrical works, and repairs and maintenance, such as road carpeting etc, locally. For the launch of major projects, such as Chandigarh Housing Board Schemes, the UT must continue to submit the proposal to Centre.

In September, UT administrator Gulab Chand Kataria, following directions from the Centre, had issued an order, stripping the heads of departments (HoDs), chief engineers, administrative secretaries, and even the chief secretary of their financial approval powers. Until then, HoDs could approve works up to ₹1.5 crore, chief engineers up to ₹3 crore, administrative secretaries up to ₹20 crore, the chief secretary up to ₹50 crore, and the administrator up to ₹100 crore. The order had led to much confusion within the administration, halting much of their work as officials felt that their files may be stuck in the MHA even for minor works worth lakhs.

The impact was immediate. The engineering department stopped issuing tenders altogether. Records on the administration’s e-tendering portal show the last tender was issued on October 1, with none released since.

The disruption also hit critical sectors. Tenders for medicine procurement in government hospitals were stalled, raising the risk of essential drug shortages.