Union Cabinet brings back MPLAD Scheme

What is the News?

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

What is the MPLADS Scheme?

​​MPLADS is a Central Sector Scheme fully funded by the Government of India. 

Nodal Ministry:  Ministry of Statistics and Programme Implementation

Objective: 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.

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.

Click Here to read more about MPLAD Scheme

What had happened with the MPLADS Scheme during Covid-19?

In 2020, the Government 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.

However, the scheme has been restored now as the country is now on the road to economic recovery.

How will the funds be released for the MPLADS Scheme from now on?

The government will release MPLADS fund at the rate of Rs. 2 crores per Member of Parliament for the remaining period of FY 2021-22 in one instalment and at the rate of Rs. 5 crores per annum per Member of Parliament during FY 2022-23 to FY 2025-26 in two instalments of Rs.2.5 crore each.

Source: This post is based on the following articles: 

• “Union Cabinet brings back MPLAD Scheme” published in “The Hindu” on 11th November 2021.
• “Cabinet approves Restoration and continuation of Member of Parliament Local Area Development Scheme (MPLADS)” published in PIB on 11th November 2021.