10-Nov-2021: Cabinet approves Restoration and continuation of Member of Parliament Local Area Development Scheme (MPLADS)

The Union Cabinet, chaired by the Prime Minister Shri Narendra Modi, today has approved the restoration and continuation of Member of Parliament Local Area Development Scheme (MPLADS) during the remaining part of Financial Year 2021-22 and up to Financial Year 2025-26 co-terminus with the period of 15th Finance Commission.

Details of the Scheme:

• The MPLADS is a Central Sector Scheme fully funded by Government of India. The objective of the scheme is to enable MPs to recommend works of developmental nature with emphasis on the creation of durable community assets in the areas of drinking water, primary education, public health, sanitation and roads, etc. primarily in their Constituencies.
• The annual MPLADS fund entitlement per Member of Parliament (MP) constituency is Rs.5 crore, released in two instalments of Rs.2.5 crore each, subject to the fulfilment of conditions as per the MPLADS Guidelines.
• For managing the health and adverse impacts of covid 19 in the society, the Cabinet in its meeting held on 6th April 2020, had decided not to operate MPLADS during the FY 2020-21 and 2021-22 and place the fund at the disposal of Ministry of Finance for managing the impacts of covid 19 pandemic.
• As the country is now on the road to economic recovery and the Scheme continues to be beneficial for the creation of durable community assets, in fulfilling the aspirations of locally felt needs of the Community, in skill development and creation of jobs across the country, thereby helpful in achieving the objective of Atmanirbhar Bharat. Accordingly, the Union Cabinet has now decided to restore Members of Parliament Local Area Development Scheme (MPLADS) during the remaining part of Financial Year 2021-22 and to continue MPLADS up to 2025-26, co-terminus with the period of 15th Finance Commission.

The Ministry will release MPLADS fund at the rate of Rs. 2 crore per Member of Parliament for the remaining period of FY 2021-22 in one instalment and at the rate of Rs. 5.00 crore per annum per Member of Parliament during FY 2022-23 to FY 2025-26 in two instalments of Rs.2.5 crore each. Since the inception of the Scheme, a total of 19,86,206 works/projects have been completed with the financial implication of Rs. 54171.09 crore.

Financial implications:

The total financial implication for restoration and continuation of the MPLADS for the remaining part of the Financial Year 2021-22 and up to 2025-26 will be Rs. 17417.00 crore as tabulated below:

Implementation Strategy and Targets: 

• The MPLAD scheme is governed by a set of guidelines, which are revised
  from time to time.
• The process under MPLADS starts with the Members of Parliament recommending works to the Nodal District Authority.
  The Nodal District concerned is responsible for implementing the eligible works recommended by the Members of Parliament and maintaining the details of individual works executed and amount spent under the Scheme.

Impact:

• The restoration and continuation of MPLADS will restart the community developmental projects / works in the field which are halted / stopped due to lack of funds under MPLADS.
• It will restart fulfilling the aspirations and developmental requirements of the local community and creation of durable assets, which is the primary objective of the MPLADS.
• It will also help in reviving the local economy.

Background:

• The MPLADS is a Central Sector Scheme fully funded by Government of India. The objective of the scheme is to enable MPs to recommend works of developmental nature with emphasis on the creation of durable community assets in the areas of drinking water, primary education, public health, sanitation and roads, etc. primarily in their Constituencies.
• The annual MPLADS fund entitlement per Member of Parliament (MP) constituency is Rs.5 crore, released in two instalments of Rs.2.5 crore each, subject to the fulfilment of conditions as per the MPLADS Guidelines.
• The Ministry conducted a Third Party Evaluation of the MPLADS works during 2021 in 216 districts across the country. The Evaluation Report recommended for the continuation of MPLADS.

5-Feb-2021: Development must reach the people without any delay, dilution or diversion – Vice President

The Vice President, Shri M. Venkaiah Naidu today called upon the people’s representatives and governments to ensure that the development reaches the people without any delay, dilution or diversion. He also wanted the MPs to shun populism and guide the people on their developmental needs.

Speaking at a virtual event after releasing the book titled “Parliamentary Messenger in Rajasthan”, the Vice President also urged parliamentarians to use MPLADS funds for Saansad Adarsh Gram Yojna to develop villages as model villages. The book is written by Dr K.N. Bhandari and focuses on the health and education initiatives undertaken through the MPLAD Scheme on the recommendation of Dr Abhishek Singhvi in Rajasthan over 12 years from 2006 to 2018.

Noting that MPLAD Scheme aims at empowering people’s representatives by enabling them to serve their constituents, Shri Naidu said that since its inception in 1993, over 19 crore and 47 thousand works have been completed and the scheme has helped in creating assets across the country.

Referring to some shortcomings mentioned in monitoring reports on the implementation of the scheme, the Vice President also drew attention to several positives of the scheme such as high degree of involvement of local communities in the identification of works.

He expressed his happiness over the Government’s decision to put in place third party monitoring of MPLADS works for their execution in a transparent manner. “I am sure that third party monitoring mechanism coupled with the wisdom and experience of MPs would help streamline the processes for creation of assets through the scheme”, he added.

The Vice President also mentioned several suggestions made by the parliamentary committees to further improve the scheme such as the timely release and proper utilization of funds, a mechanism to monitor the quality of works/projects and their timely completion and the need for effective coordination between MPs and administrative authorities.

Shri Naidu also called upon the state governments and local administration to ensure timely execution of MPLADS projects by following the recommendations of the MPs in letter and spirit.

Observing that the level of debates in the House and image of the politicians in people’s eyes are going down, the Vice President wanted the MPs to uphold dignity and decency and do their duty sincerely. “Members of Parliament must be role models for other public representatives”, he said.

Praising Dr Abhishek Singhvi for his work as a lawyer and a parliamentarian, Shri Naidu mentioned his many a contributions, including as the Chairman of the Parliamentary Standing Committee on Law & Justice many years ago. He said that the book illustrates the power of doing public good through sound, targeted and efficient use of MPLAD funds and hoped that it will serve as a guide for all stakeholders involved in the developmental work under MPLADS.

The Deputy Chairman of Rajya Sabha, Shri Harivansh ji, Union Minister, Shri Thaawarchand Gehlot ji, Leader of Opposition in Rajya Sabha, Shri Ghulam Nabi Azad ji, Dr Abhishek Singhvi ji and other MPs participated in the virtual event.

Following are the excerpts from the speech –

“I have great pleasure in releasing this book written by Dr K.N. Bhandari on the health and education initiatives undertaken through the MPLAD Scheme on the recommendation of Dr Abhishek Singhvi in Rajasthan over 12 years from 2006 to 2018.

This book illustrates the power of doing public good through sound, targeted and efficient use of MPLAD funds. While going through some of its pages, I was impressed by the many examples of how it has touched the lives of so many people in education and health sectors. I consider that this is an excellent example for other Parliamentarians to look and consider making the best to use of these funds allocated under MPLADS.

Some of the examples given by Dr Singhvi just now in his address underscore the importance of designing initiatives, which are both innovative and location-specific. Railway platform benches and ambulances on specific stretches of accident-prone roads or region specific initiatives, like the setting up ‘Piaos’ in the arid and parched areas of western Rajasthan are schemes that address critical needs of the people of this area.

I am glad that this book documents the work done by Dr. Singhvi as a parliamentarian.

Dr Abhishek Singhvi is a truly multifaceted personality—who blends and balances his professional and political roles deftly. He also leads an active public life as a third term sitting MP. He is also an author and a commentator.

As the Chairman of the Parliamentary Standing Committee on Law & Justice many years ago, he came in for a lot of praise, especially for the skillful and deft handling of the Lokpal Bill and the drawing up of a near unanimous Committee report, written in a very lucid manner.

Members of the Upper House have always listened to his speeches and interventions with great interest.

At this book release, my mind goes back to my early years of public life in Andhra Pradesh when I realized that social service is at the heart of good public service.

I am in agreement with the words and sentiments of Shri Harivansh, my valued colleague in the Rajya Sabha, who has rightly written in his Foreword to the book:

“I must say that Dr Singhvi presents a good example of the unexceptionable and spotless use of MPLAD funds. Such examples show that the MPLAD initiatives of schemes and ideas behind it are good and desirable; only abusers and distorters have given it a bad name. The achievements given in this book are truly impressive, which deserve to be emulated.”

Dear friends,

I have been informed that a sizeable amount of Rs.52,810 crores approximately been spent on MPLAD scheme since its inception in 1993. As a result, a total 19 crore and 47 thousand works have been completed and the scheme has helped in creating assets across the country.

I am happy that the government has put in place third party monitoring of MPLAD works for their execution in a transparent manner. While the monitoring reports pointed to some shortcomings in implementation of the scheme, there are quite a large number of positive conclusions. There are a number of instances where there has been a high degree of involvement of local communities, groups and sections of the people in the identification of works/ facilities required as per their felt needs.

I am sure that third party monitoring mechanism coupled with the wisdom and experience of MPs would help streamline the processes for creation of assets through the scheme.

I would also like Hon’ble Members to remember the call given by the Prime Minister, Shri Narendra Modi to use MPLADS funds for Saansad Adarsh Gram Yojna to develop villages as model villages.

MPLAD Scheme was announced basically to empower people’s representatives by enabling them to serve their constituents.

The parliamentary committees too have been making a number of suggestions to further improve it. They have emphasized the need for timely release and proper utilization of funds as also the need to have a mechanism to monitor the quality of works/ projects and their timely completion. The need for effective coordination between MPs and administrative authorities was also highlighted.

While the role of an MP, as you know, is limited only to recommending the works, it is also equally important for the MP to follow up with the authorities concerned to ensure that there are no bottlenecks in the timely execution of the projects and their fruits reach the people.

I am happy to note that Shri Singhvi has been quite successful in ensuring that the scheme is implemented in its letter and spirit.

I wish Dr Abhishek Singhvi many more productive years of service to the nation. I also compliment Dr. K.N. Bhandari for his efforts in compilation of the MPLAD initiatives of Dr Abhishek Singhvi in this book titled “Parliamentary Messenger in Rajasthan”. I hope that this book will serve as a guide for all stakeholders involved in the developmental work under MPLADS.

6-Apr-2020: Cabinet approves Non-operation of MPLADS for two years (2020-21 and 2021-22) for managing COVID 19

As a part of Government’s continued efforts to contain spread of COVID 19, the Union Cabinet chaired by the Prime Minister, Shri Narendra Modi has decided not to operate Members of Parliament Local Area Development Scheme (MPLADS) for two years (2020-21 and 2021-22). These funds will be used to strengthen Government’s efforts in managing the challenges and adverse impact of COVID19 in the country.

29-Mar-2020: Vice President appeals to Rajya Sabha MPs to contribute from MPLADS funds to combat COVID-19

The Vice President of India and Rajya Sabha Chairman, Shri M. Venkaiah Naidu has appealed to all Members of Parliament to contribute at least Rs. 1 crore initially from their MPLADS funds to supplement the Government’s efforts in the fight against COVID-19 pandemic.

In a letter to all MPs, the Vice President referred to the extra-ordinary situation arising from the outbreak of COVID-19 and the plethora of measures being undertaken by the Government of India, and other stakeholders, including the private sector to control and mitigate the situation for the people.

Highlighting the requirement of the enormous amount of resources-financial, material and human- to successfully combat COVID-19, Shri Naidu said the Government of India is pooling financial resources from various avenues to augment the availability of funds at the national, state and district levels.

Observing that their prompt action will greatly help India in its fight against COVID-19, the Vice President requested the MPs to give their consent to centrally earmark an amount of at least Rs.1 crore initially from their MPLAD Scheme for the Financial Year 2020-21.

He also pointed out that the Ministry of Statistics and Program Implementation has suitably amended the relevant guidelines to allow one-time dispensation under MPLADS for managing COVID-19.

Meanwhile, the Vice President also urged individuals to come forward and contribute to the PM-CARES Fund to strengthen disaster management capacities. While appreciating various civil society organizations for providing help to the needy and poor in this hour of crisis, he appealed to people to stay safe and healthy and strictly follow the guidelines issued by the government.

Earlier, the Vice President held a meeting with Hon’ble Speaker of Lok Sabha, Shri Om Birla, Secretary Generals of both the Houses and  spoke to the Deputy Chairman, Rajya Sabha and leaders of different political parties in Rajya Sabha  about MPLADS.

He also appreciated the gesture of people from various walks of life in contributing towards to the PM-CARES Fund and appealed to all to come forward and donate to this noble cause, while reminding everyone of India’s age-old tradition of share and care, which is the core of our philosophy.

Appealing to one and all to take care of the stranded migrant labour in their areas, Shri Naidu requested state governments, voluntary and philanthropic bodies to provide them with food and shelter. He also wanted the agencies which hired the migrant labour to come to their rescue.

The Vice President also spoke to Minister for State (IC) for Labour & Employment, Shri Santosh Kumar Gangwar and to the Cabinet Secretary, Government of India, Shri Rajiv Gauba and enquired about the coordination with various state governments on the issue of migrant labour.

30-Aug-2018: Annual Review of MPLADS Program

The 21st All India Review Meeting on Members of Parliament Local Area Development Scheme (MPLADS) was held under the Chairmanship of Union Minister of Statistics & Program Implementation Sh. D. V. Sadananda Gowda in the national capital today. Nodal Secretaries from States/UTs overseeing the implementation of MPLADS scheme took part in the deliberations. The focus was on issues related to the implementation of MPLADS with the States/UTs so that the Ministry can take steps to address these for further improvements in its implementation.

Major Issues: Major Agenda Items, discussed during the meeting, include - Status of pending installments, progress on utilization of MPLADS Fund, Status of works recommended and progress of sanctioned works in Natural Calamities area, VIP reference/Grievances, Review Meetings of MPLADS at State level, Closure of accounts, Recent modification in guidelines etc.

It was pointed out that the major problems being faced in the implementation of the Scheme at the District level include non-submission of requisite documents in time to the Ministry such as Audit Certificate, Utilization Certificate, Provisional Utilization Certificate, Monthly Progress Report, Bank Statement and Online Monthly Progress Report.

Performance: Haryana, Chhattisgarh, Mizoram, Punjab, Sikkim, Tamil Nadu, Telangana, West Bengal, Gujarat, Odisha are best performing States/UTs in terms of uploading the information (Monthly Progress Report and Work-wise details) on the MPLADS web Portal.

UTs like Lakshadweep, A& N Islands and States of Kerala, Maharashtra and Tamilnadu are amongst the higher side of the performance having maximum percentage utilization of funds over release.

Works under MPLADS: Since April, 2014 out of 4,67,144 works recommended  by the MPs (Both Lok Sabha and Rajya Sabha), 4,11,612 works have been sanctioned and 3,84,260 works have been completed upto 31st July, 2018.  Since inception, till 31.07.2018, Rs 47,922.75 Crores have been released under the Scheme and works of Rs 49,065.58. Crores have been sanctioned by the District Authorities.  Of the total release since inception, Rs 45604.94 Crore have been utilized. This is more than ninety-five percent of the release.

Addressing the participants at the inaugural session, the Minister of Statistics and Programme Implementation, Sh. D. V. Sadananda Gowda, mentioned that the MPLADS scheme was introduced in the year 1993 and it has completed 25 years- a Silver Jubilee Year. He congratulated all the stakeholders on this occasion. He called upon the District Authorities to sanction the recommended eligible works and make full efforts to speed up the utilization. He expressed concern over delay in responding to the references received from the MPs/VIPs and even common persons and requested the State Government officials to respond to all the complaints in a time bound manner. He urged the MPs to contribute towards rehabilitation works in Kerala in wake of recent floods there causing widespread destruction to the lives and property. The Minister hoped the deliberations and discussions during the technical sessions would go a long way to further improve implementation of the Scheme.

The Secretary MOSPI, KV Eapen highlighted the role and responsibility of different stakeholders of the Scheme. He emphasized the need of timely utilization of previous releases and furnishing the required documents for further releases.  He expressed hope that the deliberations would help resolve all the related issues and would chalk out a future course of action for effective and much better utilization of the funds provided under the MPLADS Scheme.

Initiatives under MPLADS: Some of the new initiatives undertaken recently by this Ministry include issue of a Monthly Bulletin to keep the MPs informed about the Status of his funds as also that of works recommended by him, uploading the beta version of the revamped integrated MPLADS Portal, providing an informative Dashboard for use of MPs and citizens, initiation of geo tagging of all the works on the portal which would facilitate the States/ UTs in sharing the best practices /works being done under the Scheme.

Guidelines on MPLAD Scheme mandates all District Authorities and Implementing Agencies to mandatorily carry out expenditure the Scheme, using PFMS Expenditure, Advance and Transfer (EAT) Module with immediate effect.  The same instructions have been reiterated by the Ministry of Finance. For this, all Functionaries upto the level of Implementing Agencies are to be trained on EAT module.  Ministry of Statistics & Programme Implementation has proposed training through Video Conferencing during 15th September 2018 to 15th October 2018 in batches.

10-Jan-2018: Cabinet approves continuation of Members of Parliament Local Area Development Scheme beyond 12th Plan

The Cabinet Committee on Economic Affairs has given its approval to continuation of Members of Parliament Local Area Development Scheme (MPLADS) till the term of the 14th  Finance Commission i.e. 31.03.2020.  

The Scheme would entail an annual allocation of Rs. 3,950 crore and a total outlay of Rs. 11,850 crores over the next three years with an additional annual allocation of Rs. 5 crore per year for monitoring through independent agency and for capacity building/training to State/District officials to be imparted by the Ministry.

The MPLADS funds are released to the nodal District Authorities on receipt of requisite documents and as per provisions of Guidelines on MPLADS.

Impact: The entire population across the country stands to benefit through creation of durable assets of locally felt needs, namely drinking water, education, public health, sanitation and roads etc., under MPLAD Scheme.

The MPLAD Scheme has resulted into creation of various durable community assets which have impacted the social, cultural and economic life of the local communities in one way or the other.

Background: The MPLAD Scheme is an ongoing Central Sector Scheme which was launched in 1993-94.  Since the inception of the Scheme till August, 2017, a total number of 18,82,180 works for Rs. 44,929.17 crore have been sanctioned from MPLADS fund.

The Scheme enables the Members of Parliament to recommend works for creation of durable community assets based on locally felt needs to be taken up in their constituencies in the area of national priorities namely drinking water, education, public health, sanitation, roads etc. The Scheme is governed by a set of guidelines, which have been last revised in June, 2016.