MPLADS Scheme

Browse this blog to understand the MPLADS scheme, a constituency development fund available to MPs.

In a flourishing democracy like India, MPs (members of Parliament) have a responsibility to their constituency- its development and progress. MPLADS scheme is an innovative constituency development fund for Indian MPs that can leverage and add value to the existing development programs by earmarking designated funds for projects. Many MPs have made excellent use of the MPLADS funds to meet the community’s local needs. A citizen should be aware of the centrally-run MPLADS scheme and MLA development funds available in some states to ensure they participate in the effective utilisation of such funds. 

What Is the MPLADS Scheme?

The MPLADS (Members of Parliament Local Area Development Scheme is a constituency development scheme formulated by the Indian Government on 23 December 1993. It enables the members of Parliament (MPs) to recommend developmental work in their constituencies with importance accorded to creating durable community assets, based on needs locally felt by the community. The spending limit is ₹ 5 crores per year. 

Implementation of MPLADS 

  • MPLADS was announced in December 1993, by the late Prime Minister Shri. P.V Narsimha Rao.

  • Although its announcement received criticism initially, MPLADS has continued to date, with successive governments supporting the scheme by allocating budgetary funds.

  • Funds Allocation for each MP was ₹ 5 lakhs in 1993-94; it increased to ₹ 2 crores in 1998-99. This was further revised to ₹ 5 Crores in 2011-12.

  • MPLADS is administered by the Ministry of Statistics and Programme Implementation (MoSPI). MoSPI publishes an annual report on the MPLADS program operations, which provides information on the extent of work or the number of work completed for each Lok Sabha member (MP). The report helps assess how the MP has utilised their MPLADS funds, and the cumulative work undertaken under the scheme.

  • At the height of the Covid pandemic, the central government suspended MPLADS to help mobilise money for priority sectors like vaccine development and health infrastructure.

Features of MPLADS

  • MPLADS is a centrally-sponsored plan scheme. MPLADS funds are released in the form of grants directly to the district authorities.

  • MPLADS funds are to be used for creating durable assets for the community, like Educational infrastructure, health, Water supply, transportation, sanitation, and electrification

  • A specified portion of each MP’s funds should benefit Scheduled Caste and Scheduled Tribes population.

  • After the recommendation of the MP, district authority, or district level officer ascertains the feasibility and appoints an Implementer. Implementation of MPLADS is usually done by a local government body or a reputed NGO.

  • The district authority must inspect at least 10% of all works under implementation each year.

  • The annual funds of ₹ 5 crores are released in two instalments of ₹ 2.5 crores each.

  • MPLADS funds are non-lapsable. In other words, unused funds can be carried forward to the subsequent years, allowing the MP to spend later.

  • MPLADS funds can be converged with MG-NREGS and with the National program for the development of sports

  • Citizens have the right to information on any aspect of MPLADS and the ongoing work under it, as per the provisions of the Right to Information Act of 2005.

Challenges With MPLADS

  • Inadequate citizen participation: MPLADS was envisaged to have the character of decentralised development based on the principle of participatory development. However, citizen participation has remained lukewarm. There is no information on how locally felt needs were given primacy.  

  • Insufficient monitoring of sanctioned works: Guidelines stipulate that district authorities should monitor the sanctioned works. However, there is no indicator for monitoring. Annual reports do not throw light on monitoring. There is no indication of monitoring of asset condition after completion of works.

  • Tendency to use MPLADS to gain political mileage: Research data indicate that MPs tend to go slow in the 1st half of their term. A majority of the MPLADS funds were spent during the last year of their term, just before elections, to gain political mileage. 

Conclusion

Since its inception in 1993, the MPLADS scheme has grown in its application by MPs to meet local community needs. Notwithstanding the challenges that have been addressed from time to time, the MPLADS scheme has been effective in addressing local community needs, enabling the MPs to meet the development needs of their constituency. MPLADS gives elected representatives like MPs opportunities to add value to the governments’ development projects. It has helped bridge the critical gaps in development projects’ time frames or those that need urgent attention. Despite the challenges faced from time to time, MPLADS has been an excellent development initiative to equip elected representatives with funds to meet urgent local community needs and bridge critical gaps.

faq

Frequently asked questions

Get answers to the most common queries related to the UPSC Examination Preparation.

What is MPLADS and when was the scheme launched?

Ans. MPLADS stands for Members of Parliament Local Area Development Scheme- which is a constituency...Read full

What is the current fund allocation under MPLADS?

Ans. MPLADS has an allocation of ₹ 5 crores per annum for each MP. These are administered as per ...Read full

Who sanctions MPLADS projects?

Ans. District Authority sanctions a specific project on the recommendation of the local Member of P...Read full