Government Revised MPLADS Rules

MPLADS UPSC: Relevance

• GS 2: Government policies and interventions for development in various sectors and issues arising out of their design and implementation.

MPLADS India: Context

• According to the revised procedure for flow of funds under the CSS (Centrally-Sponsored Scheme), including Member of Parliament Local Area Development Scheme (MPLADS), of the Finance Ministry, all interest earnings should be compulsorily remitted to the Consolidated Fund of India.

MPLADS MoSPI: Key points

• The Union Government has proposed that any interest accrued on the ₹5 crore annual funds that are allotted to each MP for their local area development scheme (MPLADS) has to be deposited back to the Centre.
• The changes proposed are aimed at timely and efficient utilisation of funds.
• Notably, the grant of funds under the MPLADS scheme was suspended for nearly 19 months due to Covid-19 pandemic and it was restored by the cabinet in November in 2021.

What is MPLADS?

• MPLADS full form: Member of Parliament Local Area Development Scheme.
• MPLADS meaning: The MPLAD Scheme was launched in 1993 to provide a mechanism for the Members of Parliament to recommend works of developmental nature for creation of durable community assets.
• The Scheme was launched to provide basic facilities including community infrastructure, based on locally felt needs to be taken up in their Constituencies.
• The Scheme was initially under the control of Ministry of Rural Development. It was later transferred to the Ministry of Statistics and Programme Implementation.

About MPLADS

• MPLADS is a centrally sponsored scheme fully funded by the Government of India.
• The funds released under the Scheme are non-lapsable. The annual entitlement per MP per Constituency is Rs. 5 crore which is released by the Nodal Ministry in two instalments of Rs. 2.5 crore each.
• The second instalment of the MPLADS funds is released subject to the fulfilment of the following eligibility criteria
  • the unsanctioned balance amount is less than Rs.1 crore;
  • the unspent balance is less than Rs. 2.5 crore.
  • Utilization Certificate of the previous financial year and Audit Certificate for the funds released for MP concerned in the year prior to previous year have been furnished by District Authority.
• The elected members of the Rajya Sabha can recommend works anywhere in the State from which they are elected.
• Nominated Members of Rajya Sabha may recommend works for implementation anywhere in the country.
• An MP can recommend eligible works upto Rs. 25 lakh per year outside his/her jurisdiction, provided that such contribution will not be allowed for NGOs.
• 15% of MPLADS funds are to be utilized for areas inhabited by SC population and 7.5% for areas inhabited by ST population.
• The time frame for completion of works should be stipulated to the implementing agency and should not normally exceed one year.

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