Members of Parliament Local Area Development Scheme (MPLAD)

The Government has retracted change in the guidelines for use of MPLADS (Members of Parliament Local Area Development Scheme) funds.

More about the news:

  • Changed guidelines made the provision for allocation to SC/ST areas advisory in nature.
  • Concerns expressed: This could result in a drop in funds for these areas, and change the “inclusive and egalitarian nature” deed of MPLADS.
  • The earlier guidelines, in place of since 2016:
  • provided flexibility in spending funds on either SCs or STS depending on their population in a constituency. They also had a provision to spend the stipulated amount in any other part per of the state provided there was not a sizeable SC/ST population in a MP’s constituency.
  • This meant that of the Rs 25 crore MP could spend over five years, at least Rs 3.75 crore had to be set aside for SCs and Rs 1.87 OV ethe crore for SI’s.
  • The government has now reinstated these old provisions.

MP Local Area Development (MPLAD) Scheme

  • MPLAD is under MOSPI. The scheme is funded and administered through the Union Ministry of Statistics and Programme Implementation (MOSPI). 
  • Amount allotted – MPLADS allot Rs. 5 crore per year to each Member of Parliament (MP) to be spent on projects of their choice in their constituency. Under the scheme, each MP can suggest to the District Collector for work to be done under the scheme.
  • Role of District Authorities – Sanction of the eligible works and implementation of the sanctioned works in accordance with State Government’s financial, technical and administrative rules.
  • Nodal District – If a Lok Sabha Constituency is spread over more than one District, the Member of Parliament can choose any one of the Districts as Nodal District in his/her constituency. The Rajya Sabha MP can choose any District in his/her State of Election as Nodal District.
  • SC/ST Areas -MPs are to recommend every year, works costing at least 15% of the MPLADS entitlement for the year for areas inhabited by Scheduled Caste population and 7.5% for areas inhabited by S.T. population.    
  • Creating Community Assets – In case there is insufficient tribal population in the area of Lok Sabha Member, they may recommend this amount for the creation of community assets in tribal areas outside of their constituency but within their State of election. In case a State does not have S.T. inhabited areas, this amount may be utilized in S.C. inhabited areas and vice-versa.    
  • Areas prone to calamities – MPLADS works can also be implemented in the areas prone to or affected by the calamities like floods, cyclone, Tsunami, earthquake, hailstorm, avalanche, cloud burst, pest attack, landslides, tornado, drought, fire, chemical, biological and radiological hazards.        
  • MGNREGA – Funds from Member of Parliament Local Area Development Scheme (MPLADS) can be converged with MGNREGA with the objective of creating more durable assets.
  • Khelo India – Funds from Member of Parliament Local Area Development Scheme (MPLADS) can be converged with Khelo India.
  • Amount released in two Instalments – The annual entitlement of Rs 5 crore shall be released, in two equal instalments of Rs 2.5 crore each directly to the District Authority of the Nodal District of the Member of Parliament concerned.        

Conditions for Second Instalment – The second installment of the MPLADS funds will be released subject to the fulfilment of the following eligibility criteria –

(i) the unsanctioned balance amount available in the account of the District Authority after taking into account the cost of all the work sanctioned is less than Rs.1 crore;

(ii) the unspent balance of fund of the MP Concerned is less than Rs. 2.5 crore; and

(iii) Utilization Certificate and Audit Certificate of the immediately concluded financial year ending 31st March have been furnished by District Authority.  

MPLADS Fund Non-Lapsable –  It means that funds sanctioned under MPLADS can be carried forward for utilization for subsequent year.

Further, the funds not released by the Government of India in a year will be carried forward for making releases in the subsequent years.   

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