Context-

Recently, Union cabinet, restored the Members of Parliament Local Area Development Scheme (MPLADS) that was suspended in April 2020 subsuming the funds for the scheme in the consolidated fund of India.

The scheme was suspended for two financial years (2020-21 and 2021-22) and also, MPs will get ₹2 crore instead of the annual approved ₹5 crore.

About MPLADS scheme-

• On 23rd December 1993 Prime Minister had announced the Members of Parliament Local Area Development Scheme (MPLADS) in the Parliament. Initially the MPLADS was under the control of the Ministry of Rural Development but later transferred to Ministry of Statistics and Programme Implementation in October 1994.
• 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.
• Objective - to enable MPs to recommend works of developmental nature with emphasis on the creation of durable community assets based on the local needs to be taken up in their Constituencies like, assets related to Drinking water, primary education, public health, sanitation and roads, etc. are being created.
• The MPLADS is a Plan Scheme fully funded by Government of India.
• Focus on SC and ST population- 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 S.T. population.
• In order to encourage trusts and societies for the betterment of tribal people, a ceiling of Rs. 75 lakh is provided for building assets by trusts and societies.
• District Collector/District Magistrate/Deputy Commissioner will generally be the District Authority to implement MPLADS in the district.
• Implementation- District Authority shall make the selection of an appropriate Implementing agency through which a particular work recommended by an MP would be executed.
• Funds from Member of Parliament Local Area Development Scheme (MPLADS) can be merged with MGNREGA with the objective of creating more durable assets.
• The minimum amount sanctioned under the MPLAD Scheme for any project or work should normally not be less than Rs. 1 lakh.
• Funding mechanism- the annual entitlement of Rs 5 crore shall be released, in two equal instalments of Rs 2.5 Crore each, by Government of India directly to the District Authority of the Nodal District of the Member of Parliament concerned.
• Funds released to the District Authority by the Government of India are non-lapsable.
• The District Authorities have been implementing MPLADS since 1993-94. They have to submit periodically works Completion Report, Utilization Certificate, and Audit Certificates.
• The Members of Parliament Local Area Development Division is entrusted with the responsibility of implementation of Members of Parliament Local Area Development Scheme (MPLADS).

Recommending work-

• Under the scheme, each MP has the choice to suggest to the District Collector for works worth of Rs.2 Crores per annum to be taken up in his/her constituency.
• The Rajya Sabha Members of Parliament can recommend works in one or more districts in the State from where he/she has been elected.
• The Nominated Members of the Lok Sabha and Rajya Sabha may select any one or more Districts from any one State in the Country for implementation of their choice of work under the scheme.
  Steps to improve functioning of the scheme-
• Accordingly, based on the innovative ideas received from the local people regarding developmental projects, a ‘One MP – One Idea’ Competition may be held in each Lok Sabha constituency annually to select the three best innovations for cash awards and certificate of appreciation for next five best innovations.

Sources-

• The Hindu
• Vikaspedia
• mplads.gov.in
• MPLADS guidelines 2016 pdf