Context: Recently, Union Cabinet has approved the restoration of the Member of Parliament Local Area Development Scheme (MPLADS) for the remaining part of Financial Year 2021-22 till 2025-26.
Issues with MPLADS

• Implementation Lapses: The Comptroller and Auditor-General of India (CAG) has flagged instances of financial mismanagement and artificial inflation of amounts spent.
• 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.
• Monitoring and Regulation: The scheme was launched for promoting participatory development but there is no indicator available to measure level of participation.
• Breach of Federalism: MPLADS encroaches upon the domain of local self governing institutions and thereby violates Part IX and IX-A of the Constitution.
• Conflict with Doctrine of Separation of Powers: MPs are getting involved in executive functions.

Member of Parliament Local Area Development Scheme (MPLADS)

• It is a Central Sector Scheme fully funded by Government of India.
• Launched: 1993-94
• Objective: to enable MPs to recommend development works.
• Motto: One MP-One Idea

The scheme was suspended for two financial years (2020-21 and 2021-22).
Features

• Annual MPLADS fund entitlement/MP constituency: Rs. Rs 2 crore (instead of earlier approved Rs 5 crore annually).
• MPs are to recommend every year, works costing at least 15 % of the MPLADS entitlement for the year for areas inhabited by SC population and 7.5 % for areas inhabited by ST population.
• A ceiling of Rs. 75 lakhs for building assets by trusts and societies in order to encourage trusts for the betterment of tribal people.
• MPLAD can be converged in individual/stand-alone projects of other Central and State Government schemes.

Power and responsibility of district authority

• They can examine eligibility of works, sanction funds, select implementing agencies, prioritise works, supervise overall execution etc.
• They are mandated to inspect at least 10% of the projects under implementation in a district.

Funds

• Funds are released in the form of grants in-aid directly to the district authorities.
• They are non-lapsable.
• Funds can be merged with other schemes such as MGNREGA and Khelo India

Implementation Strategy and Targets

• The process with recommending works to the Nodal District Authority.

Impact of the scheme continuation

• It 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 the creation of durable assets, which is the primary objective of the MPLADS.
• It will also help in reviving the local economy.