Table of Contents
Relevance: POLITY
For Prelims: MPLADS | Central Sector Scheme | MoSPI | ₹5-crore Annual Entitlement | District Authority | Durable Community Assets | SC/ST Earmarking
For Mains: Decentralised Planning | Participatory Development | Fiscal Accountability | Last-Mile Delivery | Outcome Monitoring | Administrative Coordination
Why in News?
Telangana’s 23 Members of Parliament utilised only ₹94 crore out of ₹394.8 crore available under the Members of Parliament Local Area Development Scheme (MPLADS) during the last two years.The State’s utilisation rate of 23.8% was below the national average of 33%.
Telangana’s MPLADS Performance
- MPs covered: 23
- Funds available: ₹394.8 crore
- Amount spent: ₹94 crore
- Fund utilisation: 23.8%
- Works recommended: 3,703
- Works completed: 2,347
- Works pending: 1,356
- Implied completion rate: 63.4%
The difference between the physical completion rate and financial utilisation may arise from variations in project costs, delays in payment settlement or late updating of expenditure records.
Comparison with Selected States
| State | Fund utilisation |
| Tamil Nadu | 43.1% |
| Karnataka | 28.5% |
| Telangana | 23.8% |
| Andhra Pradesh | 23% |
| Kerala | 21.2% |
| Maharashtra | 20.2% |
Telangana performed marginally better than Andhra Pradesh, Kerala and Maharashtra. However, it remained behind Tamil Nadu, Karnataka and the national average.
About MPLADS
The Members of Parliament Local Area Development Scheme is an ongoing Central Sector Scheme launched in 1993–94.
It enables MPs to recommend development works based on locally felt needs. The scheme primarily supports the creation of durable community assets in areas of national priority.
The Ministry of Statistics and Programme Implementation (MoSPI) is responsible for:
- formulating policy;
- releasing funds;
- issuing guidelines; and
- prescribing the monitoring mechanism.
Objectives of MPLADS
The scheme seeks to:
- address constituency-specific development needs;
- create durable public assets;
- fill small but important infrastructure gaps;
- strengthen participatory and decentralised development;
- provide flexibility in responding to local priorities; and
- direct public investment towards disadvantaged communities.
Projects may be recommended in sectors such as drinking water, education, public health, sanitation and roads.
Key Features
- Every parliamentary constituency has an annual entitlement of ₹5 crore.
- Funds are generally released in two instalments of ₹2.5 crore each.
- MPs do not directly receive or spend MPLADS funds.
- Funds are transferred to the district authority responsible for implementing the works.
- Lok Sabha members recommend works within their constituencies.
- Rajya Sabha members may recommend works in one or more districts of the State from which they were elected.
- Nominated members may select one or more districts in any one State.
- An elected MP may recommend works worth up to ₹25 lakh in a financial year outside the constituency or State.
- At least 15% of the annual entitlement must benefit areas inhabited by Scheduled Castes.
- At least 7.5% must benefit areas inhabited by Scheduled Tribes.
Conclusion
Telangana’s low MPLADS utilisation highlights weaknesses in project preparation, administrative coordination and monitoring. Merely increasing expenditure will not be sufficient. The scheme must ensure that public funds are converted into timely, durable, inclusive and useful community assets.
CARE MCQ
Q. Consider the following statements regarding MPLADS:
- It is a Central Sector Scheme administered by the Ministry of Statistics and Programme Implementation.
- Members of Parliament directly receive and spend the funds allocated under the scheme.
- It supports the creation of durable community assets based on locally felt needs.
Which of the statements given above are correct?
(a) 1 and 2 only
(b) 1 and 3 only
(c) 2 and 3 only
(d) 1, 2 and 3
Answer: (b) 1 and 3 only
Explanation:
- Statement 1 is correct: MPLADS is a Central Sector Scheme administered by MoSPI.
- Statement 2 is incorrect: MPs recommend works but do not directly receive or spend the funds. District authorities implement the projects.
- Statement 3 is correct: The scheme supports durable community assets in sectors such as health, education, sanitation and drinking water.
FAQs
1. Is MPLADS a Central Sector Scheme?
Yes. It is fully funded by the Union government and administered by the Ministry of Statistics and Programme Implementation.
2. Do MPs directly receive MPLADS funds?
No. MPs only recommend projects. Funds are transferred to the concerned district authorities.
3. What is the annual MPLADS entitlement?
Each parliamentary constituency has an annual entitlement of ₹5 crore.
4. Who implements MPLADS projects?
The district authority sanctions the projects and gets them executed through eligible implementing agencies.
5. Can Rajya Sabha members recommend projects?
Yes. They may recommend projects in one or more districts of the State from which they were elected.
6. Are funds reserved for SC- and ST-inhabited areas?
Yes. At least 15% of the entitlement must benefit SC-inhabited areas and 7.5% must benefit ST-inhabited areas.
