• The Union Cabinet decided to restore the Member of Parliament Local Area Development Scheme (MPLADS) for the remaining part of financial year 2021-22 and up to financial year 2025-26 co-terminus with the period of 15th Finance Commission.

• In April 2020, the government had suspended MPLADS for two years — 2020-21 and 2021-22 — and said that the funds totalling about Rs 7,900 crore would be used for improving health infrastructure and managing health services in fighting the COVID-19 pandemic. 

• While Rs 2 crore to each MP will be released in one instalment for the remaining period of 2021-22, from 2022-23 to 2025-26 each Member of Parliament will get Rs 5 crore per annum in two equal instalments.

• The total financial implication for restoration and continuation of MPLADS for the remaining part of 2021-22 and up to 2025-26 will come at Rs 17,417 crore.

What is MPLADS?

• The Members of Parliament Local Area Development Scheme (MPLADS) is a central sector scheme fully funded by the government of India. The annual MPLADS fund entitlement per MP constituency is Rs 5 crore.

• On December 23, 1993, the Prime Minister announced the scheme in the Parliament. 

• Initially the MPLADS was under the control of the ministry of rural development. 

• When the scheme was launched, an amount of Rs 5 lakh per MP was allotted. It became Rs 1 crore per annum per MP constituency from 1994-95. This was stepped up to Rs 2 crore from 1998-99 and now it is Rs 5 crore.

• The guidelines were issued in February 1994, covering the concept, implementation and monitoring of the scheme. The scheme was transferred to the ministry of statistics and programme implementation in October 1994. The guidelines were subsequently revised.

How does the scheme work?

• The objective of the scheme is to enable MPs to recommend works of developmental nature for creation of durable community assets and for provision of basic facilities, including community infrastructure, based on locally felt needs.

• Under the scheme, preference is given to works relating to national priorities, such as provision of drinking water, public health, education, sanitation, roads, etc.

• The elected Lok Sabha Members can recommend works in their respective constituencies.

• The elected members of the Rajya Sabha can recommend works anywhere in the state from which they are elected. Nominated members of the Lok Sabha and Rajya Sabha can recommend works for implementation, anywhere in the country.

• MPLADS works can be implemented in areas affected by natural calamities and biological, chemical, radiological hazards, etc. MPs from the non-affected areas of the state/UT can also recommend permissible works upto a maximum of Rs 25 lakh per annum in the affected areas in that state/UT.

• In order to accord special attention to the development of areas inhabited by Scheduled Castes (SCs) and Scheduled Tribes (STs), 15 per cent of MPLADS funds are to be utilized for areas inhabited by SC population and 7.5 per cent for areas inhabited by ST population. 

• If an elected MP finds the need to contribute MPLADS funds, to a place outside that state/UT or outside the constituency, the MP can recommend eligible works, under the guidelines up to a maximum of Rs 25 lakh in a financial year. Such a gesture on the part of an MP will promote national unity, harmony, and fraternity among the people, at the grassroots level. 

• The funds released under the scheme are non-lapsable. The entitlement of funds not released in a particular year is carried forward to the subsequent years, subject to eligibility.

Implementation of the scheme

• The role of the MP is limited only upto recommendation of works. Thereafter, it is the responsibility of the district authority to sanction, execute and complete the works recommended by the MP within the stipulated time period.

• 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. 

• A department in each state/UT is designated as the nodal department with the overall responsibility of supervision, monitoring and coordination of the MPLADS implementation with the districts and other line departments. 

• The government of India informs the state nodal department about the MPLADS funds released to the district authorities. The district authorities report the status of MPLADS implementation to the government of India and state nodal department.

• The district authority is empowered to examine the eligibility of works, sanction funds and select the implementing agencies, supervise the overall execution, and monitor the scheme at the ground level. 

• The district authorities get the works executed through the line departments, local implementing agencies or other government agencies, as well as through reputed NGOs.

Impact of the scheme

• Since its inception, the scheme has benefited the local community by meeting various developmental needs such as drinking water facility, education, electricity, health and family welfare, irrigation, non-conventional energy, community centers, public libraries, bus stands/stops, roads, pathways and bridges, sports, etc. These works are sanctioned, executed and monitored as per the provisions of the MPLADS guidelines.

• Restoration and continuation of the scheme will restart the community developmental projects in the field which are halted due to lack of funds under MPLADS.

• It will restart fulfilling the aspirations and developmental requirements of the local community and creation of durable assets, which is the primary objective of the MPLADS.

• The ministry of statistics and programme implementation had conducted a third party evaluation of the works carried out under the MPLADS during 2021 in 216 districts across the country.

• Since the inception of the scheme, over 19.86 lakh works/projects have been completed with the financial implication of Rs 54,171.09 crore.

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