Financial powers of ministers, depts hiked

Tribune News Service

New Delhi, June 29

The Central government has enhanced the financial powers of different ministries and departments to expedite project approvals. The Finance Ministry announced the revised financial limits of departments which will allow ministers to clear projects of up to Rs 500 crore as against the earlier ceiling of Rs 150 crore.

Besides, projects or schemes worth Rs 500 crore and above and up to Rs 1,000 crore can be cleared by the Finance Minister and projects over Rs 1,000 crore would require the Cabinet approval, the Finance Ministry said.

As per the revised delegation, the Committee on Non-Plan Expenditure (CNE), which serves as an appraisal forum for all non-plan proposals of Central Government Ministries will now appraise proposals involving expenditure of Rs 300 crore and above. The earlier limit for this was Rs 75 crore. Non-plan schemes and projects of less than Rs 300 crore can now be appraised by Ministry/ Standing Finance Committee of the Ministry concerned.

The financial power of the Minister in charge of the administrative Ministry for approval of the non-plan schemes has also been enhanced and the new threshold is Rs 500 crore which can now be approved at the Minister level.

In addition, the financial limits regarding appraisal and approval of increase in cost estimates have also been revised.

With this enhancement, the financial limits for appraisal and approval of plan and non-plan schemes of the Central government ministries have been brought almost at par.