MPLADS

Introduction – What is MPLADS?

MPLADS is a Central Sector Scheme launched in 1993 with a very simple yet powerful idea:
➡️ Every Member of Parliament (MP) should have the opportunity to directly recommend small-scale development works in their local areas, based on the locally felt needs of people.

• The purpose was to reduce inequity in development—because earlier, development was decided in a top-down manner from ministries, ignoring many local demands.
• Hence, MPLADS gave decentralized power to MPs, so that even the smallest local issues could get attention.

Nature of the Scheme

• Type: Central Sector Scheme → 100% funding by the Union Government.
• Fund Size: Each MP gets an entitlement of ₹5 crore per year.
• Non-Lapsable: If funds are not used in one year, they do not lapse; they carry forward.
• Fund Flow: The money is released as grants-in-aid directly to the District Authority, not to MPs.

Objectives

The scheme is not meant for personal or political gain, but for community welfare.
Its main objective is:
👉 To create durable community assets like drinking water facilities, sanitation units, roads, classrooms, community halls, etc., which improve the quality of life of people.

Salient Features

(a) Background and Administration

• Launched in 1993 under the Ministry of Rural Development.
• Later, in 1994, transferred to the Ministry of Statistics and Programme Implementation (MoSPI).
• During COVID-19, it was suspended for FY 2020–21, and no funds were given.

(b) Allocation to MPs

• Each MP gets ₹5 crore every year.
• Total national budget → Around ₹4000 crore annually.

(c) Implementing Mechanism

• Implementing District Authority (IDA): The district collector/magistrate is the nodal authority.
• Implementing Agencies: Government departments, local bodies, trusts, cooperatives, etc., selected by the IDA.
• Project Maintenance: Once completed, the User Agency (like a panchayat, school, or hospital) is responsible for its upkeep.

(d) Transparency and Accountability

• eSAKSHI Portal: Online monitoring platform for tracking projects.
• RTI Act, 2005: Any information about MPLADS is available to the public.
• Once a project is sanctioned, a new MP cannot cancel or alter it, ensuring continuity.

(e) Provisions for Smooth Implementation

• MPs can recommend projects even before fund release.
• District authorities ensure payments are made directly to vendors in real-time from a Central Account Number (CAN).
• MPLADS funds can also be pooled with other schemes (Central/State/local) for larger projects.

Work Allocation Rules

• Lok Sabha MPs: Can recommend works only within their constituency.
• Rajya Sabha MPs: Within their state of election.
• Nominated MPs: Anywhere in India.

Project Cost Requirements

• Minimum project cost → ₹2.5 lakh.
• Smaller projects may be approved if they benefit the public.

Exceptions

• MPs can recommend ₹25 lakh per year outside their constituency/state.
• In case of calamities (like floods, earthquakes), they can recommend up to ₹1 crore for the affected district.

SC/ST Special Provisions

To ensure social justice, there are earmarked funds:

• SC Areas: At least 15% of MPLADS funds.
• ST Areas: At least 7.5% of MPLADS funds.
• If a constituency has fewer tribals, MPLAD funds may be utilized in SC-dominated areas, and vice-versa.