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MP Local Area Development Scheme

Context:

At a time when MPs have been asking for an increase in the MP Local Area Development Scheme (MPLADS) fund, the Union Finance Ministry has ordered revised rules, under which the interest that the fund accrues will be deposited in the Consolidated Fund of India.

Relevance:

GS II- Government policies and Interventions, Welfare Schemes

Dimensions of the Article:

  1. About the Scheme
  2. Features
  3. Release of Funds
  4. Execution of works

About the Scheme:

MPLADS is an ongoing Central Sector Scheme which was launched in 1993-94.  The Scheme enables the Members of Parliament to recommend works for creation of durable community assets based on locally felt needs to be taken up in their constituencies in the area of national priorities namely drinking water, education, public health, sanitation, roads etc.

Nodal Ministry:

The Ministry of Statistics and Programme Implementation has been responsible for the policy formulation, release of funds and prescribing monitoring mechanism for implementation of the Scheme.

Features

  • The annual MPLADS fund entitlement per MP constituency is Rs. 5 crore.
  • MPs are to recommend every year, works costing at least 15 per cent of the MPLADS entitlement for the year for areas inhabited by Scheduled Caste population and 7.5 per cent for areas inhabited by S.T. population.
  • In order to encourage trusts and societies for the betterment of tribal people, a ceiling of Rs. 75 lakh is stipulated for building assets by trusts and societies subject to conditions prescribed in the scheme guidelines.
  • Lok Sabha Members can recommend works within their Constituencies and Elected Members of Rajya Sabha can recommend works within the State of Election (with select exceptions).
  • Nominated Members of both the Rajya Sabha and Lok Sabha can recommend works anywhere in the country.
  • All works to meet locally felt infrastructure and development needs, with an emphasis on creation of durable assets in the constituency are permissible under MPLADS as prescribed in the scheme guidelines.
  • Expenditure on specified items of non durable nature are also permitted as listed in the guidelines.

Release of Funds:

  • Funds are released in the form of grants in-aid directly to the district authorities.
  • The funds released under the scheme are non-lapsable.
  • The liability of funds not released in a particular year is carried forward to the subsequent years, subject to eligibility.

Execution of works:

  • The MPs have a recommendatory role under the scheme. They recommend their choice of works to the concerned district authorities who implement these works by following the established procedures of the concerned state government.
  • The district authority is empowered to examine the eligibility of works sanction funds and select the implementing agencies, prioritise works, supervise overall execution, and monitor the scheme at the ground level.

Source: The Hindu

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August 2022
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