Last Updated on 10th May, 2022
3 minutes, 34 seconds

Description

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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.

 

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