MPLADS funds hiked to Rs 5 cr

The hike in the MP Local Area Development Scheme (MPLADS) was approved at a meeting of the Union Cabinet.

Members of Parliament will now have an annual allocation of Rs 5 crore for development schemes in their constituencies,as against the earlier ceiling of Rs 2 crore. The hike in the MP Local Area Development Scheme (MPLADS) was approved at a meeting of the Union Cabinet on Thursday.

The Cabinet also approved annual administrative expenses of 2 per cent of the annual MPLAD outlay to be given to districts or states for proper implementation and monitoring of the scheme. The issue was highlighted by Bihar Chief Minister Nitish Kumar,who had recently written to the Centre seeking a dedicated implementation machinery for the scheme or allocating 6% of the fund for implementing the scheme.

This augmentation in the allocation to Rs 5 crore will result in better fulfillment of the needs of the people and creation of durable community assets based on locally-felt needs, Information and Broadcasting Minister Ambika Soni told reporters after the meeting,adding that it came on the back of demands made by MPs. Earlier,Finance Minister Pranab Mukherjee had announced the increase in allocation while replying to the Finance Bill 2011.

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The higher allocation under the MPLADS is estimated to cost the exchequer an additional Rs 2,370 crore annually,raising the total expenditure from Rs 1,580 crore to Rs 3,950 crore per annum. The hike has been made effective from April 1 this year.

It was felt that rising prices were adversely affecting the projects under the MPLADS,Soni said.

The Cabinet has also agreed to provide an additional annual Rs 5 crore to the Ministry of Statistics and Programme Implementation for monitoring of projects through independent agencies.

As on March 31,13.87 lakh works have been recommended by MPs. Of this,12.30 lakh works have been sanctioned by the district authorities and 11.24 lakh works completed since the inception of the scheme in 1993-94. Over Rs 22,490 crore have been released since then and an expenditure of Rs 20,454 crore has been incurred.

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The scheme,which enables the MPs to recommend works for creation of durable community assets based on locally felt needs to be taken up in their constituencies,is governed by a set of guidelines which were last revised in November 2005.