Union Cabinet Approves Restoration Of MPLADS Till FY26 With Over Rs 17,000 Crore

The Union Cabinet on Wednesday (10 November) approved the restoration and continuation of the Member of Parliament Local Area Development Scheme (MPLADS) during the remaining part of Financial Year (FY) 2021-22 and up to FY 2025-26 co-terminus with the period of 15th Finance Commission (FC).

The MPLADS is a Central Sector Scheme fully funded by the 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 five 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 6 April 2020, had decided not to operate MPLADS during the FY 2020-21 and 2021-22 and place the fund at the disposal of the Ministry of Finance for managing the impacts of the covid-19 pandemic.

The Ministry conducted a Third Party Evaluation of the MPLADS works during 2021 in 216 districts across the country. The Evaluation Report recommended the continuation of MPLADS. Accordingly, the Union Cabinet has now decided to restore MPLADS.

The Ministry will release MPLADS fund at the rate of Rs two crore per MP for the remaining period of FY 2021-22 in one instalment and at the rate of Rs five 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, over 19.8 lakh works have been completed with the financial implication of Rs 54,171 crore.

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 17,417 crore.