MPLADS - GOVERNANCE

News: After concerns, govt corrects MPLADS change on allocation for SC/ST areas

 

What's in the news?

       The Government retracted a change in the guidelines for use of MPLADS (Members of Parliament Local Area Development Scheme) funds, which appeared to water down the requirement to set aside a certain portion for areas dominated by Scheduled Castes (SCs) and Scheduled Tribes (STs).

 

MPLADS:

       It is a Central Sector Scheme which was announced in December 1993.

       The MPLADS is a Plan Scheme fully funded by the Government of India. The annual MPLADS fund entitlement per MP constituency is Rs. 5 crores.

       Every year, MPs receive Rs. 5 crores in two 2.5 crore installments.

       MPLADS funds are non-lapsable.

 

Objective:

       The objective is to enable the Members of Parliament (MP) to suggest and execute developmental works of a capital nature based on locally felt needs with an emphasis on the creation of durable assets.

 

Work recommendation:

       Lok Sabha Members can recommend works within their Constituencies.

       Elected Members of Rajya Sabha can recommend works within the State of Election.

       Nominated Members of both the Rajya Sabha and Lok Sabha can recommend works anywhere in the country.

 

Scheme administration:

       Since October 1994 it has been transferred to the Ministry of Statistics and Programme Implementation (henceforth, the Ministry).

       The Ministry prepared guidelines of the scheme and amended this from time to time.

 

Scheme implementation:

       Under MPLADS, the process begins with Members of Parliament recommending projects to the Nodal District Authority.

       The Nodal District Collector is responsible for implementing eligible works requested by Members of Parliament and for preserving records of individual works completed and expenditures made under the Scheme.

 

Other Key Features:

       15% of the funds is reserved separately for the development of areas inhabited by the Scheduled Castes.

       7.5% of the funds is reserved separately for the development of areas inhabited by the Scheduled Tribes.

       No funds for individual benefits and for the creation of movable and non-durable assets.

       The Nodal authority has a power to release ₹25 lakhs for reclamation of natural and man-made calamities. He/she also has a power to release ₹1 crore for calamity of severe nature.

       There is a provision of spending outside the state (₹25 lakhs) also to promote national unity.

       The minimum value of the project should be ₹1 lakh.

 

Issues:

1. Lapses in Implementation:

       The Comptroller and Auditor-General of India (CAG) have identified instances of financial mismanagement and intentional infliction of expenditure.

2. No Statutory Backing:

       The scheme is not governed by any statutory law and is subject to the whims and fancies of the government of the day.

3. Breach of Federalism:

       MPLADS encroaches upon the domain of local self governing institutions and thereby violates Part IX and IX-A of the Constitution.

4. Gaps in Utilization:

       Reports of underutilization and misutilization of MPLADS funds continue to surface at regular intervals but there seems to have been no serious attempt to do anything about it till now.