Guidelines for Member of Parliament Local Area Development Scheme revised

As part of an effort to ensure timely and effective implementation of works proposed under the Member of Parliament Local Area Development Scheme (MPLADS), the Union Government decided to raise the amount to be released in the first instalment. The MPLADS allow MPs to suggest works to the Head of District to be taken up in their constituency.

Projects implemented by government agencies would now be provided 75 per cent of the project cost as the first instalment, while the ones implemented by non-governmental agencies would be provided 60 per cent. Currently only 50 per cent of the estimated cost is released as the first instalment, irrespective of the nature of the project, which led to complaints of delays in completion.

According to Union Minister for Statistics and Programme Implementation M.S. Gill, the government’s decision is likely to improve the working of the Scheme as a whole.
Conditions were further relaxed for smaller projects costing less than Rs.2 lakh. For such small projects the entire amount would be released at one go.

To ensure that funds were not spread too thinly, the government decided against sanctioning project costing less than Rs.1 lakh.

The Centre aims at ensuring that the MPLADS funds were utilised fruitfully for the benefit of the grassroots, therefore the basket of works that could be taken up under the scheme had been widened to include projects such as the purchase of books for libraries, and ambulances and hearse vans that would be owned and controlled by district authorities. Also, the purchase of Microsoft Office software along with the training of two teachers per school would be now allowed as part of an effort to promote computer literacy in the country.

MPs would be allowed to spend up to Rs.10 lakh a year on projects in any State or Union Territory other than the one from where they were elected.

All transfers of funds under the scheme would be made electronically and the web-based monitoring and reporting system would be revamped to provide for greater transparency.

Unlike in the past, a limit of Rs.50 lakh per annum was imposed on contributions to trusts and societies so that more money was available for community-related works. The time frame for the sanction of works was raised to 75 days, considering that the district authorities had to go through a number of steps before sanctioning a project.

The scope and extent of the physical monitoring of completed projects would also be expanded to cover 400 more districts.

Highlights of revised MPLADS:

•    Projects implemented by government agencies would now be provided 75 per cent of the project cost as the first instalment.
•    Conditions relaxed for smaller projects costing less than Rs.2 lakh.
•    Projects costing less than Rs 1 lakh will not to be sanctioned.
•    Basket of works that could be taken up under the scheme had been widened to include projects such as the purchase of books for libraries.
•    MPs would be allowed to spend up to Rs.10 lakh a year on projects in any State or Union Territory.
•    Limit of Rs.50 lakh per annum was imposed on contributions to trusts and societies.
•    Scope & extent of the physical monitoring of completed projects expanded to cover 400 more districts.