MPLADS SCHEME

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Context - The Union Finance Ministry has ordered to revise rules under MPLADS Scheme.

Details

The Union Finance Ministry has decided to revise the rules of MPLADS Schemes.
According to the latest notification released by the finance ministry, the interest that the fund accrues will be deposited in the Consolidated Fund of India.
Each MP is allocated Rs 5 crores annually under the scheme.
- The MPLADS fund is released to the district authority and the MPs only have the power to recommend development work.
- The payment is also released by the designated district authority on completion of the work.
So far, the interest accrued on the fund used to be added to the MPLADS account and could be used for the development projects.

Members of Parliament Local Area Development Scheme (MPLADS)

It is an ongoing Central Sector Scheme which was launched in 1993-94.
The Scheme allows the Members of Parliament (MP) to recommend developmental works such as drinking water, education, public health, sanitation, roads etc, in their constituencies.
The Ministry of Statistics and Programme Implementation is responsible for the policy formulation, release of funds and monitoring of the implementation of the Scheme.
MPs have to recommend at least 15% of the MPLADS funds of the year for areas inhabited by the Scheduled Caste population and 7.5% of Funds for areas inhabited by the Scheduled Tribes population.
Lok Sabha Members can recommend works within their Constituencies.
Elected Members of Rajya Sabha can recommend works within the State of Election.
Nominated Members of both the Rajya Sabha and Lok Sabha can recommend works anywhere in the country.
All works should meet locally felt infrastructure and development needs, with the objective of creating durable assets in the constituency.

How does it work?

A Member of Parliament has to give his/ her choice of area in a prescribed format to the Ministry of Statistics and Programme Implementation with a copy to the State Government and the District Magistrate of the chosen District.
The annual funds of Rs 5 crore are released, in 2 equal instalments of Rs 2.5 crore each, by the Government of India directly to the District Authority of the Nodal District of the Member of Parliament concerned.
MP can recommend work on the MP’s letterhead and signed by the MP to the district authority.
The District Authority shall identify the Implementing Agency capable of executing the work.
District Authority shall be responsible for the timely and effective implementation of such works.