Government of India
Ministry of Finance
Department of Expenditure
Enhanced Financial Powers to Ministries
Government of India has decided to revise the financial limits for appraisal and approval of Non-Plan Schemes/ Projects by competent authorities . 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/Departments , will now appraise proposals involving expenditure of Rs.300 crore and above . The earlier limit for this was Rs.75 crore. Non-plan schemes/projects of less than Rs.300 crore can now be appraised by Ministry I 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/projects has also been enhanced and the schemes/project costing less than Rs.500 crore can now be approved at his/her level. Earlier, the Minister-in-charge could approve projects costing less than Rs.150 crore . Finance Minister shall be competent financial authority for approving scheme/projects having financial implications of Rs.500 crore and above and upto Rs.1000 crore . Proposal having financial limits of Rs.1000 crore and above shall require approval of the Cabinet/Cabinet Committee on Economic Affairs. Concurrently, financial limits regarding appraisal and approval of increase in cost estimates have also been revised. Increase in cost upto 20% of the firmed up cost estimates can now be appraised by the Financial Adviser and approved . by Secretary of the administrative Department, if the absolute cost escalation is upto Rs.75 crore, and by the Administrative Minister-in-charge if absolute cost escalation is above this . With this enhancement of financial powers, the financial limits for appraisal and approval of plan and non-plan schemes/projects of Central Government Ministries and Departments have been brought almost at par. This is expected to expedite appraisal and approval process in the Central Government Ministries/Departments.
(Annie George Mathew)
Joint Secretary to the Government of India