MPLADS (Members of Parliament Local Area Development Scheme) funds

MPLADS (Members of Parliament Local Area Development Scheme) funds

Subject : Schemes

Context: The government Tuesday retracted a change in the guidelines for use of MPLADS (Members of Parliament Local Area Development Scheme) funds, which appeared to water down the requirement to set aside a certain portion for areas dominated by Scheduled Castes (SCs) and Scheduled Tribes (STs).

Concept:

Advisory guidelines: In order to give due attention to the development of infrastructure in the areas predominantly inhabited by Scheduled Castes and Scheduled Tribes, it shall be advisable for Members of Parliament to recommend every year, works costing at least 15 per cent,7.5 percent of the total MPLADS entitlement for the year for areas predominantly inhabited by Scheduled Caste population, and Scheduled Tribe population respectively

The earlier guidelines: in place 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 of the state provided there was not a sizeable SC/ST population in an MP’s constituency.

The revised guideline:

• “MPLADS funds can be used for creation of immovable public assets on government-owned land, and movable public assets for government-owned and government-controlled institutions only, i.e. the central state/UT and local governments, including government-aided institutions.” state provided there was not a sizeable SC/ST population in an MP’s constituency.
• As per the revised guidelines, cooperative societies – except cooperative housing societies  will also be eligible for assistance under MPLADS, on a par with “registered trusts/societies, only for creating durable assets for the community and public utility

MPLADS (Members of Parliament Local Area Development Scheme) funds

• Under MPLADS MPs can recommend works of developmental nature with emphasis on the creation of durable community assets in the areas of drinking water, primary education, public health, sanitation and roads in their constituencies.
• MPLAD is a Central Sector Scheme which was announced in December 1993.
• The recommendations of the works are made by the Members of Parliament for the betterment of the community.
• These works are executed by District Authorities in accordance with the respective State Government’s financial, technical and administrative rules.
• Initially, the Scheme was under the control of the Ministry of Rural Development and Planning. In October, 1994, the scheme was transferred to the Ministry of Statistics & Programme Implementation.
• Under this scheme, every MP is entitled to spend Rs 5 crore annually.
• MPs to get ₹2 cr. each instead of previously approved ₹5 cr.
• According to the ‘Guidelines on Members of Parliament Local Area Development Scheme (MPLADS)’ published by the Ministry of Statistics and Programme Implementation in June 2016, the MPLAD funds can also be used for implementation of the schemes such as Swachh Bharat Abhiyan, Accessible India Campaign (Sugamya Bharat Abhiyan), conservation of water through rain water harvesting and Sansad Aadarsh Gram Yojana, etc.

Functioning

• Each year, MPs receive Rs. 5 crore in two instalments of Rs. 2.5 crore each. Funds under MPLADS are non-lapsable.
• Lok Sabha MPs have to recommend the district authorities projects in their Lok Sabha constituencies, while Rajya Sabha MPs have to spend it in the state that has elected them to the House.
• Nominated Members of both the Rajya Sabha and Lok Sabha can recommend works anywhere in the country.
• 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 ST population.
• The District Authority would be responsible for overall coordination and supervision of the works under the scheme at the district level and inspect at least 10% of the works under implementation every year.