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MPLAD Scheme

Current Affairs

The Union Cabinet, chaired by the PM Shri Narendra Modi, approved the restoration and continuation of Member of Parliament Local Area Development Scheme (MPLADS) during the remaining part of Financial Year 2021-22 and up to Financial Year 2025-26 co-terminus with the period of 15th Finance Commission.

Context

  • For managing the health and adverse impacts of covid 19 in the society, the Cabinet in its meeting held on 6th April 2020, had decided not to operate MPLADS during the FY 2020-21 and 2021-22 and place the fund at the disposal of Ministry of Finance for managing the impacts of covid 19 pandemic.
  • The Ministry conducted a Third Party Evaluation of the MPLADS works during 2021 in 216 districts across the country. The Evaluation Report recommended the continuation of MPLADS.

Objective

The objective of the scheme is to enable MPs to 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, etc. primarily in their Constituencies.

About

  • It is a Central Sector Scheme, fully funded by Government of India, announced in December 1993.
  • The annual MPLADS fund entitlement per Member of Parliament (MP) constituency is Rs.5 crore, released in two instalments of Rs.2.5 crore each, subject to the fulfilment of conditions as per the MPLADS Guidelines.
  • The total financial implication for restoration and continuation of the MPLADS for the remaining part of the Financial Year 2021-22 and up to 2025-26 will be Rs. 17417.00 crore.

Significance

As the country is now on the road to economic recovery and the Scheme continues to be beneficial for the creation of durable community assets, in fulfilling the aspirations of locally felt needs of the Community, in skill development and creation of jobs across the country, thereby helpful in achieving the objective of Atamnirbhar Bharat.

  • The restoration and continuation of MPLADS will restart the community developmental projects / works in the field which are halted / stopped due to lack of funds under MPLADS.
  • It will restart fulfilling the aspirations and developmental requirements of the local community and creation of durable assets, which is the primary objective of the MPLADS.
  • It will also help in reviving the local economy.

Implementation

  • The MPLAD scheme is governed by a set of guidelines, which are revised from time to time.
  • The process under MPLADS starts with the Members of Parliament recommending works to the Nodal District Authority.
  • The Nodal District concerned is responsible for implementing the eligible works recommended by the Members of Parliament and maintaining the details of individual works executed and amount spent under the Scheme.
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Source: https://pib.gov.in/PressReleasePage.aspx?PRID=177052

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