Hike in Fund Resulted in Increment of Rs 2370 crore under MPLAD Scheme

The Union Finance Minister Pranab Mukherjee on 11 March 2011 announced in Lok Sabha an increase in the allocation under the Members of Parliament Local Area Development Scheme (MPLAD) Scheme from Rs.2 crore to Rs.5 crore per Member. This hike in the fund for MPLAD scheme started in 1993 will result in an increased allocation of Rs 2370 crore for the 2011-12 financial year. Mukherjee announced that the decision to hike the MPLADS was taken after getting the CAG report on the related subject which had made certain recommendations.
 
To meet their credit needs of the fishermen the extension of the existing Interest Subvention Scheme of providing short term loans to farmers at 7% interest with additional interest subvention for timely repayment to fish farmers and fishermen as well. The initiative is likely to benefit over 20 lakh fish farmers and fishermen engaged in fishing operations in India.

It was also announced that henceforth capital stock in educational institutions and hospitals will be treated as infrastructure sub-sectors. Therefore capital investment for these sub-sectors will be eligible for the Viability Gap Funding Scheme of the Ministry of Finance.

Women’s SHGs Development Fund with a corpus of Rs.500 crore that will operate through NABARD will be exclusively utilized for providing refinance on loans given to women’s SHGs on soft terms.