Members of Parliament Local Area Development Scheme (MPLADS)

Objectives of MPLADS: MPLADS was introduced in 1993. The objective is to enable the MP to suggest and get executed developmental works of a capital nature based on locally felt needs with an emphasis on the creation of durable assets.

MPLADS is a scheme formulated by the Government of India on 23 December 1993 that enables the members of parliaments (MP) to recommend developmental work in their constituencies with an emphasis on creating durable community assets based on locally felt needs.

Elected Members of Rajya Sabha representing the whole of the State as they do, may select works for implementation in one or more district(s) as they may choose.

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

MPs can also recommend work of up to Rs. 25 lakhs per year outside their constituency or state of election to promote national unity, harmony, and fraternity. MPs can recommend work of up to 25 lakh for Natural Calamities in the state and up to Rs. 1 crore in the country in case of Calamity of Severe Nature (e.g. Tsunami, major cyclones, and earthquakes).

A State level nodal department is chosen, which is responsible for supervision and monitoring, and maintaining coordination with line departments. District authorities (DAs) sanction the work recommended by MPs; sanction funds; identify the implementation agency and user agency, implement the work on the ground, transfer assets to the user agency, and report back to the ministry about the status of MPLADS in the district.

Each MP is allocated Rs. 5 crores per year since 2011-12 which has been increased from Rs. 5 lakh in 1993-94 and Rs. 2 crores in 1998-99. MoSPI disburses funds to district authorities, not directly to MPs. This annual entitlement is released conditionally in two installments of Rs. 2.5 crore each. Funds are non-lapsable in nature i.e. in case of non-release of the fund in a particular year it is carried forward to the next year. MPs need to recommend work worth at least 15% and 7.5% of their funds to create assets in areas inhabited by Scheduled Castes (SCs) and Scheduled Tribes (STs) respectively. Funds for MPLADS can be converged with Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) for creating more durable assets and with the National Program for Development of Sports (Khelo India).

Infrastructure development on land belonging to registered societies/ trusts is permissible, provided the society/trust is engaged in social welfare activity and is in existence for three years. No more than Rs. 50 lakh for one or more works in the lifetime of the society/trust can be spent. MPLADS funding is not permissible for those societies where the concerned MP and his/ her family members are office-bearers. For societies or charitable homes which look after deprived segments of society, the relaxed grant is Rs. 1 crore.