The Union Finance Ministry has ordered revised rules for the MP Local Area Development Scheme (MPLADS) fund.
What are amendments?
- Under the revised rules, the interest that the fund accrues will be deposited in the Consolidated Fund of India.
- So far, the interest accrued on the fund used to be added to the MPLADS account and could be used for the development projects.
What is MPLADS ?
- The Members of Parliament (MP) Local Area Development Division is entrusted with the responsibility of implementation of Members of Parliament Local Area Development Scheme (MPLADS).
- On 23rd December 1993 Prime Minister had announced the Members of Parliament Local Area Development Scheme (MPLADS) in the Parliament.
- The Ministry of Statistics and Programme Implementation has been responsible for the policy formulation, release of funds and prescribing monitoring mechanism for implementation of the Scheme.
- The MPLADS is a Plan 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 based on the locally felt needs to be taken up in their Constituencies.
- Under the scheme, each MP has the choice to suggest to the District Collector for works to the tune of Rs.5 Crores per annum to be taken up in his/her constituency.
- The Rajya Sabha Members of Parliament can recommend works in one or more districts in the State from where he/she has been elected.
- The Nominated Members of the Lok Sabha and Rajya Sabha may select any one or more Districts from any one State in the Country for implementation of their choice of work under the scheme.
- Each MP is allocated Rs 5 crore annually under the scheme.
- M.Ps are to recommend every year, works costing at least 15 per cent of the MPLADS entitlement for the year for areas inhabited by Scheduled Caste population and 7.5 per cent for areas inhabited by S.T. population.
- The MPLADS fund is released to the district authority and the MPs only have power to recommend development work.
- The payment is also released by the designated district authority on completion of the work.
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