The then Prime Minister P.V. Narasimha Rao announced the Members of Parliament Local Area Development Scheme (MPLADS) in the Parliament on 23rd December 1993. Initially, Ministry of Rural Development was responsible for the implementation of this scheme. The very first guidelines relating to implementation and monitoring of the scheme were issued in February 1994. Later that year in October 1994, the responsibility of the MPLAD Scheme was transferred to the Ministry of Statistics and Programme Implementation.
Objective of MPLAD Scheme
The MPLADS scheme enables Member of Parliaments to recommend developmental works. Depending upon the local needs of the constituencies, emphasis must be given on the creation of such community assets which are durable in nature such as drinking water, primary education, public health, sanitation and roads, etc.
Key Features of the MPLAD Scheme
1. Centrally Sponsored Scheme
The MPLADS is a centrally sponsored plan scheme. It is fully funded by the Government of India.
2. Annual Fund Entitlement
Under MPLADS, the annual fund entitlement is Rs. 5 crore per MP constituency. Each MP will recommend works up to the annual entitlement during the financial year to the concerned District Authority.
3. Non-Lapsable Funds
Funds under this scheme are non-lapsable. It means that the amount allotted is not spent within that fiscal year, such unspent amount will be carried forward to the subsequent year, provided the eligibility criteria is met.
4. Works Recommended by Nominated MPs
Nominated Members of both the houses of Parliament (Rajya Sabha and Lok Sabha) can recommend works anywhere in the country.
5. Nodal District
Nodal District is selected for the implementation of work under this scheme. When a Constituency of Lok Sabha covers more than one District, the MP has been given the choice to select any of the one Districts as Nodal District falling in his/her constituency. The Rajya Sabha MP has been given the choice to select any District of his/her State of Election as Nodal District.
6. District Authority
For implementation of the scheme, District Collector/District Magistrate/Deputy Commissioner will generally be the District Authority.
7. Work recommendation beyond the allotted area
Lok Sabha MP generally recommend works within their own Constituencies and Elected Members of Rajya Sabha generally recommends works within the State of Election. However, there are some circumstances when they recommend work beyond the area allotted like in the event of “calamity of severe nature”. Specific guidelines are provided for the exceptional circumstances.
8. Maximum allocation towards calamity prone area
MPLADS works can also be implemented in the areas that are either prone to or affected by the calamities. For this, the Lok Sabha MPs can recommend a maximum of Rs. 25 lakh per annum from the non-affected areas of the State for such work.
9. Allotment for Scheduled Caste and Scheduled Tribe population
Every year, the Member of Parliaments has to recommend works costing at least 15 per cent of the MPLADS annual entitlement allotted towards the areas inhabited by Scheduled Caste population and 7.5 per cent for areas inhabited by Scheduled Tribe population.
To combat the Coronavirus outbreak in India, the Union Cabinet passed an ordinance to suspend the MPLADS funds for two years. Thus the MPLAD Scheme fund was suspended till the year 2022. Accordingly, a sum of Rs. 7,900 crore from the MPLAD Scheme Fund would be transferred to the Consolidated Fund of India.