Chandigarh can now approve repairs and purchases up to certain limits following recent clarifications from the Ministry of Home Affairs (MHA). The Union Territory administration has regained authority to handle minor civil, electrical, and maintenance works without seeking approval from the central government. However, the situation remains complex after months of administrative confusion.

The MHA issued fresh clarifications on November 18, 2025, regarding financial and administrative powers delegated to Union Territories, including Chandigarh. Therefore, the UT Administration no longer needs to send proposals for minor civil and electric works, repairs, and maintenance to the ministry for approval. This change aims to speed up local decision-making and reduce bureaucratic delays.

Nevertheless, all proposals for new projects and schemes must still go to the ministry for necessary approvals. The ongoing works approved under any existing project or scheme will not face any impact from this clarification. Additionally, the MHA stated that this distinction between routine maintenance and new initiatives would help streamline the administrative process.

The recent clarification follows months of confusion that began in September 2025. At that time, UT Administrator Gulab Chand Kataria revised financial powers, overturning a May order that had enhanced the financial powers of UT officers. Consequently, the Centre assumed control over the sanctioning and tendering of most schemes and projects.

Previously, the administration had powers to approve projects up to Rs 100 crore. However, after the September order, even relatively small expenditures of over Rs 1.5 crore required MHA’s clearance. This dramatic reduction created significant bottlenecks in day-to-day operations across various departments.

For normal tenders without negotiations, the Chief Secretary retains financial powers up to Rs 100 crore, the Secretary Rs 30 crore, and heads of departments Rs 4 crore. Moreover, 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. Similarly, it increased secretaries’ powers from Rs 15 crore to Rs 30 crore.

The technical sanction powers for special repairs and original works were not altered during these changes. However, for works involving negotiations or consultancy, the ministry’s approval became mandatory. Furthermore, this requirement added another layer of complexity to the approval process.

The September order created widespread confusion among UT officials. Many department heads felt uncertain about their authority to approve even small projects worth just a few lakhs. Therefore, several critical administrative tasks came to a grinding halt, affecting multiple sectors across Chandigarh.

The engineering department stopped issuing tenders completely after the September changes. Records show that the last tender appeared on October 1, 2025. Since then, no new tenders have been issued, causing a significant break in the department’s workflow. Consequently, several infrastructure projects faced indefinite delays.

The disruption extended beyond construction projects and hit critical sectors, especially healthcare. Delays in tender approvals meant that medicine procurement for government hospitals also stalled. This situation raised serious concerns about potential drug shortages in public hospitals. Additionally, patients who rely on these medicines for treatment faced uncertainty about availability.

Other essential services also experienced interruptions. For instance, the Chandigarh Transport Undertaking (CTU) found it difficult to proceed with plans for purchasing new buses. Similarly, minor road repairs that would typically receive quick approvals got stuck in the bureaucratic maze.

The confusion particularly affected projects in the Rs 1.5 crore to Rs 10 crore range. Officials remained unsure whether these required central government approval or could be processed locally. Meanwhile, the lack of clarity prevented them from moving forward with urgent repairs and purchases that the city needed.

The November 18 clarification attempts to resolve these issues by clearly distinguishing between routine maintenance work and new projects. According to the new guidelines, maintenance and repair work can proceed without central approval, regardless of cost. However, any proposal for a completely new project or scheme still requires MHA approval.

This distinction should help the UT Administration handle day-to-day operations more efficiently. For example, road repairs, building maintenance, and electrical work can now receive faster approvals. On the other hand, ambitious new initiatives like constructing new schools or launching major infrastructure projects will still need central government oversight.

The Chandigarh Housing Board’s schemes continue to require proposals submitted to the Central Government. This ensures that larger housing projects receive the necessary scrutiny and oversight from higher authorities. Similarly, other major development initiatives must follow the same approval process.

Administrative experts suggest that finding the right balance between local autonomy and central oversight remains crucial. While local decision-making can speed up routine work, certain large-scale projects benefit from central government review. Therefore, the new guidelines attempt to strike this balance by differentiating between project types.

The changes also highlight broader challenges facing Union Territories in India. Unlike states with their own elected governments, UTs depend heavily on the central government for major decisions. Consequently, any changes in the delegation of powers can significantly impact their administrative efficiency.

Looking ahead, the UT Administration hopes the November clarification will restore normalcy to government operations. Officials expect that stalled tenders will resume shortly, allowing pending projects to move forward. Furthermore, the healthcare sector should see improvements in medicine procurement as approval processes become clearer.

Chandigarh can now approve repairs and purchases up to reasonable limits for routine work, though the exact financial ceilings for different categories of maintenance work remain subject to existing delegation rules. While the recent clarification provides much-needed relief, administrators must now work to rebuild the momentum lost during the months of confusion. Only through careful implementation of these new guidelines can Chandigarh achieve the efficiency it needs while maintaining appropriate oversight for major projects.

Daily News