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 ₹ 300 crore and above. The earlier limit for this was ₹ 75 crore. Non-plan Schemes/projects of less than ₹ 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/projects has also been enhanced and the schemes/project costing less than ₹ 500 crore can now be approved at his/her level. Earlier, the Minister-in-charge could approve projects costing less than ₹ 150 crore. Finance Minister shall be competent financial authority for approving scheme/projects having financial implications of ₹ 500 crore and above and upto ₹ 1000 crore.

Proposal having financial limits of ₹ 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 ₹ 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.

Enhanced financial delegation increases appraisal and approval thresholds to expedite non plan scheme decisions across ministries. Revised delegation raises appraisal and approval thresholds for non plan schemes: central appraisal applies at or above three hundred crore, ministries appraise below that; ministerial approval now extends to projects below five hundred crore, with a higher financial authority handling larger approvals and top tier proposals requiring executive level sanction. Cost escalation rules allow up to twenty percent increases to be appraised and, subject to an absolute cap, approved by the Financial Adviser and Secretary, with larger escalations needing ministerial approval.