Members of Parliament Local Area Development Scheme (MPLADS)

The MPLADS is a Central Sector Scheme, fully funded by the Government of India. It was announced on 23 December 1993 by the then Prime Minister in Parliament. The main objective of the scheme is to enable each Member of Parliament to recommend works of developmental nature, particularly for the creation of durable community assets, based on the locally felt needs of the people.

• Initially, the scheme was administered by the Ministry of Rural Development, but since October 1994 the responsibility has been vested with the Ministry of Statistics and Programme Implementation (MoSPI). MoSPI prescribes guidelines on how the scheme should be implemented and monitored by various authorities.
• The first set of guidelines was issued in February 1994. These have been revised multiple times — in December 1994, February 1997, September 1999, April 2002, November 2005, August 2012, May 2014, and June 2016. The latest comprehensive revision is based on nearly 30 years of experience, incorporating suggestions from Members of Parliament (Lok Sabha and Rajya Sabha), feedback from Central Ministries, State/UT Governments, stakeholders, and findings of third-party evaluations instituted by MoSPI.
• When the scheme was launched in 1993-94, each Member of Parliament was allocated ₹5 lakh per annum. This was increased to ₹1 crore in 1994-95, then ₹2 crore in 1998-99, and is currently fixed at ₹5 crore per annum since FY 2011-12.
• During the COVID-19 pandemic, the scheme was suspended from April 6, 2020 to November 9, 2021. No funds were allocated for FY 2020-21. For the remaining period of FY 2021-22 (November 10, 2021 – March 31, 2022), each Member of Parliament was allocated ₹2 crore under MPLADS.

Implementation

• Nodal Ministry: Ministry of Statistics and Programme Implementation (MoSPI) since October 1994 (earlier with Ministry of Rural Development).
• Guidelines issued: First in February 1994; revised multiple times (1994, 1997, 1999, 2002, 2005, 2012, 2014, 2016).
• District Authorities are responsible for sanction, execution, and implementation of projects.
• Works are executed by government agencies; private agencies/NGOs are not allowed.

Scope of Works

Permissible works under MPLADS include:

• Drinking water facilities, sanitation, health care.
• Education-related infrastructure (classrooms, libraries, school buildings).
• Roads, pathways, bridges, and community halls.
• Irrigation and agriculture-related works.
• Electrification, solar lights, non-conventional energy sources.
• Works relating to women, children, SCs, STs, OBCs, minorities.
• Environmental protection, afforestation, and renewable energy projects.

Monitoring

• District Authorities: Overall implementation, fund utilization, reporting.
• State Nodal Department: Coordination, monitoring, and reporting to MoSPI.
• MoSPI: Prescribes guidelines, monitors progress through returns submitted by District Authorities, and conducts evaluations.

• Auditing: CAG audits expenditure.

Special Features

• MPs recommend works; they cannot directly execute projects.
• For Rajya Sabha MPs: works can be recommended in the state from which they are elected.
• For Nominated MPs: works can be recommended anywhere in India.
• Emphasis on equitable distribution: MPs must recommend works for SC/ST areas in proportion to their population.

Recent Developments

• COVID-19 Suspension: MPLADS was suspended from 6 April 2020 to 9 November 2021. No funds were allocated for FY 2020-21. MPs were allotted ₹2 crore each for the remainder of FY 2021-22.
• Calls for reforms in monitoring, transparency, and better targeting of funds.

Criticisms

• Allegations of misuse of funds and favoritism.
• Poor monitoring and lack of transparency in implementation.
• CAG reports highlighted irregularities like works not conforming to guidelines, diversion of funds, and delays.
• Some argue it undermines separation of powers, as MPs (legislators) are indirectly involved in the execution of development works.