12 March 2011

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Part 1 Know about MPLADS Scheme? Indian MPs will get Rs. 5 Crore each year

Part 1 Know about MPLADS Scheme?
Indian MPs will get Rs. 5 Crore each year

Finance Minister Pranab Mukherjee today announced Rs 2,370-crore bonanza for MPs by raising allocations under MPLAD scheme from Rs 2 crore to Rs 5 crore

Although the government obtained the approval of the Election Commission before announcing the scheme, the Minister said, MPs will not be able to utilize the enhanced allocation or make commitments till the ongoing elections in the five states (Assam, West Bengal, Tamil Nadu, Puducherry and Kerala) are completed.

What is MPLADS scheme?
Let’s understand MPLADS scheme.

The Member of Parliament Local Area Development Division is entrusted with the responsibility of implementation of Member of Parliament Local Area Development Scheme (MPLADS).

Under the scheme, each MP has the choice to suggest to the District Collector for, works to the tune of Rs.5 Crores per annum to be taken up in his/her constituency.

The Rajya Sabha Member of Parliament can recommend works in one or more districts in the State from where he/she has been elected.

The Nominated Members of the Lok Sabha and Rajya Sabha may select any one or more Districts from any one State in the Country for implementation of their choice of work under the scheme.

The Department has issued the guidelines on Scheme Concept, implementation, and monitoring.

The Department has initiated all necessary steps to ensure that the scheme is successfully implemented in the field.

The progress of the works being implemented under the scheme is monitored on a regular basis.

Why MPLADS fund or scheme is required by Member of Parliament or say elected politician?


Members of Parliament are approached by their Constituents, quite often, for small works of capital nature to be done in their Constituencies.

Hence, there was a demand made by MPs that they should be able to recommend works to be done in their Constituencies. Considering these suggestions, government announced in Parliament on 23rd December, 1993, the " Member of Parliament Local Area Development Scheme".

Nominated Members of the Lok Sabha and Rajya Sabha may also select works for implementation in one or more districts, anywhere in the country.

The allocation per MP per year stands increased to Rs.5 crores

MPs can also recommend works outside their constituencies/states for construction of assets that are permissible in the guidelines, for rehabilitation measures in the event of "natural calamity of rare severity" in any part of the country for an amount not exceeding Rs. 10 lakhs, for each calamity.

Each MP will give a choice of works to the concerned Head of the district who will get them implemented by following the established procedures, that is, he may be guided by the procedure laid down by the State Government subject to these Guidelines.

In regard to works in urban areas their implementation can be done through Commissioners/Chief Executive Officers of Corporations, Municipalities, etc., or through the Heads of District concerned as per the option of the MPs.

Implementation agencies can be either Government or Panchayati Raj institutions or any other reputed non-governmental organisation who may be considered by the District Head as capable of implementing the works satisfactorily.

Engagement of private contractors is prohibited, wherever extant Guidelines do not permit such engagement.

For purposes of execution of works through Public Works Department (PWD), wings not necessarily exclusively dealing with civil construction, but having competence in civil construction can be engaged-like for example, Public Health Engineering, Rural Housing Departments/wings, Housing Boards, Electricity Boards, Urban Development Authorities etc.

The Head of the District shall identify the agency through which a particular work recommended by the MP should be executed.

The works under the scheme shall be developmental in nature based on locally felt needs. The emphasis is on creation of durable assets.

Funds provided under the scheme should not be used for incurring revenue expenditure. The funds can also be used for purposes such as provision of service support facilities. However, they will not include any recurring expenditure like on staff to maintain such facilities.

It will also be appropriate if the scheme funds are used for partly meeting the cost of a larger work like for example for partly meeting the cost of a micro-hydel work only in case it would result in completion of the works.

Where such part costs are met under this para, it should be with reference to clearly identifiable part of the work.

Sometimes execution of work, by their very nature, may span into more than one year.

In such circumstances, funds under the scheme could be made available to the executing agency either in advance or over more than one year, phasing of execution of work being clearly kept in view.

The site selected for execution of the work by the MP shall not be changed except with the concurrence of the MP himself.

The funds under MPLADS may be used for creation of durable assets which shall always be available for public use at large.

The ownership of such assets created with MPLADS funds would vest in the Government.

The sale/transfer/disposal of the assets created out of MPLADS funds shall not be undertaken without the prior approval of the Government.

The maintenance and upkeep of assets so created will have to be ensured by the beneficiary organisation and will be subject to periodical audit and inspection by the Government.

Beneficiary organisations other than Government must enter into a formal agreement, in advance, with Government to comply with the above conditions before the funds from MPLADS are used for creation of a durable assets permissible as per procedure laid down under the MPLADS guidelines.

Payment of advances of any type to the contractors/suppliers under any work falling within this scheme is prohibited.

The Heads of districts should ensure that provision for maintenance and upkeep of the works to be taken up under this Scheme is forthcoming from the concerned local body or the relevant agency, that is, Government-aided institution, registered society etc.

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Saturday, March 12, 2011

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MPLADS Scheme, MPLADS Scheme 5 crore per annum