Chandigarh Administration Hits Hurdles for ₹1.5 Crore Projects

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CHANDIGARH: The Chandigarh administration has yet to consult the Ministry of Home Affairs (MHA) regarding the approval of new projects or tenders exceeding Rs 1.5 crore. However, the UT engineering department has compiled a list of priority projects that will be forwarded to the MHA for financial approval.

A UT official stated that projects such as new school constructions, a new DC office, the PU-PGI underpass, additional government housing, a railway under bridge (RUB), and a new police station have already passed the administrative approval stage and now require financial backing to commence construction. At this stage, the administration is deliberating on the next steps.

“This is the first instance where projects of this financial magnitude must be submitted to the MHA for approval. Moreover, the authority to open tenders has been removed from UT officials, leading to a need for clearer guidance on the procedures to follow,” added the official.

On September 30, the UT administrator stripped the UT departments of the power to initiate any new projects over Rs 1.5 crore without MHA approval, in accordance with an MHA directive issued on September 19. The authority to approve schemes, administrative adjustments, and project expenditures, along with the power to accept tenders, has now been allocated to the MHA.

Historically, the financial sanctioning powers of the UT administration have expanded gradually; for instance, until two decades ago, it had the authority to approve projects up to Rs 10 crore, which was later increased to Rs 50 crore and then to Rs 100 crore within the last four to five years. These powers have been enhanced recently,” noted the official.

Request for Relaxation

Departments are particularly concerned about routine repair and maintenance tasks. “We’ve reached out to the UT finance department to seek exemption for these routine maintenance works, which are included in standard annual budgets. Seeking MHA approval for these tasks could cause delays in essential repairs,” explained a senior official from the UT engineering department.

The authority to approve tenders has also been reassigned. Previously, executive engineers could accept tenders up to Rs 30 lakh, while superintending engineers handled those between Rs 30 lakh and Rs 1.8 crore, and chief engineers managed tenders ranging from Rs 1.8 crore to Rs 4 crore.

“We have requested the finance department to relax the requirements for routine maintenance work and also for the approval of work tenders. While a reasonable limit should be established, it should be flexible for everyday tasks. It seems unreasonable to seek MHA permission for something like a government house repainting or standard plumbing maintenance,” the official remarked.

  • Published On Oct 13, 2025 at 09:31 AM IST

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