Members of Parliament Local Area Development Scheme (MPLADS)

Introduction

The Members of Parliament Local Area Development Scheme (MPLADS) is a scheme formulated by the Government of India on December 23, 1993. This scheme allows Members of Parliament (MPs) to recommend developmental work in their constituencies, focusing on creating durable community assets based on locally felt needs.

Initially, the scheme was managed by the Ministry of Rural Development. In October 1994, the Ministry of Statistics and Programme Implementation (MOSPI) took over its administration. Elected Members of Rajya Sabha, representing entire states, can select works for implementation in one or more districts of their choosing. Nominated Members of the Lok Sabha and Rajya Sabha may also select works for implementation in one or more districts anywhere in the country. MPs can recommend work up to ?25 lakhs per year outside their constituency or state of election to promote national unity, harmony, and fraternity. They can also recommend work up to ?25 lakhs for natural calamities in the state and up to ?1 crore nationwide in cases of severe calamities (e.g., tsunamis, major cyclones, and earthquakes).

A state-level nodal department is responsible for supervising and monitoring the scheme and coordinating with line departments. District authorities sanction the work recommended by MPs and are responsible for the overall coordination and supervision of the works at the district level. They must inspect at least 10% of the works under implementation each year, involve MPs in the inspections as feasible, sanction funds, identify implementation and user agencies, implement the work on the ground, transfer assets to user agencies, and report back to the ministry about the status of MPLADS in the district.

In June 2016, MOSPI allowed MPLAD funds to be used for schemes like Swachh Bharat Abhiyan, Accessible India Campaign (Sugamya Bharat Abhiyan), water conservation through rainwater harvesting, and Sansad Aadarsh Gram Yojana, among others.

Objectives

The main objective of the MPLAD scheme is to serve the greater public purpose rather than individual interests. MPs can only recommend projects, but District Authorities have the ultimate power to sanction them.

Priority Sectors Under the Scheme

Drinking water facilities
Education
Electricity facilities
Non-conventional energy resources
Healthcare and sanitation
Irrigation facilities
Railways
Roads, pathways, and bridges
Sports
Agriculture and allied activities
Self-help group development
Urban development

Works Not Covered Under the Scheme

Construction of office and residential buildings for public and private agencies
Land acquisition or paying compensation
Naming assets after individuals
Grants or loans to state/central relief funds
Assets for individual benefits
Works on lands belonging to religious groups
Execution of works in unauthorized colonies

Other Permitted Works

Construction of railway halt stations
Providing CCTV cameras in strategic locations
Installation of bio-digesters at stations, schools, and hospitals
Provision for fixed weighing scale machines for farmers
Installation of rainwater harvesting systems in public spaces
Construction of shelters for skill development

Allocation and Funding Under MPLADS

The Government of India releases an annual entitlement of ?5 crores in two equal installments to the District Authority of the Nodal District selected by the concerned MP. As of July 2, 2018, ?47,572.75 crores had been released since 1993, with 94.99% utilized. Presently, ?3,940 crores are disbursed annually for the MPLADS scheme.

The District Authority should identify the implementing agency, which must have the capability to execute the eligible work qualitatively, timely, and satisfactorily. All recommended works must be sanctioned within 75 days from the date of receipt of the recommendation after completing all formalities. If any work is not sanctioned within the prescribed time, the District Authority must inform the MPs regarding the rejection of the work within 45 days from the date of receipt of recommendations.

This scheme can be converted into individual/stand-alone projects under Central and State Government schemes provided they meet MPLADS' eligibility conditions. Funds from local bodies can be pooled with MPLADS works, but other scheme sources should be used first. MPLADS funds should be released later for the project's successful completion. Once a work under the Scheme is completed, it should be put to public use.

Infrastructure development on land belonging to registered societies/trusts is permissible if the society/trust is engaged in social welfare activity and has been in existence for three years. No more than ?50 lakhs can be spent on one or more works in the society/trust's lifetime. MPLADS funding is not permissible for societies where the concerned MP and his/her family members are office bearers. For societies or charitable homes serving deprived segments of society, the relaxed grant is ?1 crore.

Key Major Types of Projects

Infrastructure Development

Construction of pedestrian ways and footpaths
Construction of additional toilets for passengers in the circulation area of Railway Stations
Construction of Platforms at Railway Stations
Construction of Foot Over Bridges at Railway Stations
Provision of Drinking Water in Station premises
Provision of Escalator/Travellator at Stations
Provision of Solar Lighting at Stations/Level Crossing Gates
Amenities for physically challenged persons at Stations (like ramps, separate toilets, etc.)

Healthcare Initiatives

Significant contributions have been made to local health infrastructure, particularly in rural and underserved areas. The construction of health centers and procurement of medical equipment have enhanced the capacity of local health facilities. By improving infrastructure and providing necessary equipment, the MPLADS scheme has increased the accessibility and quality of healthcare services, reducing the need for patients to travel long distances for treatment. The scheme has been instrumental in addressing urgent healthcare needs during emergencies, such as providing ambulances and medical supplies during natural disasters and pandemics.

Educational Projects

The MPLADS scheme has contributed significantly to educational development at the grassroots level. By focusing on infrastructure development, provision of educational materials, and support for higher education and skill development, the scheme has helped improve access to quality education across various regions. However, to maximize its impact, addressing challenges related to fund utilization, monitoring, and equitable distribution remains essential.

Sanitation and Water Supply

The MPLADS scheme has made notable contributions to improving sanitation and water supply across India. By focusing on infrastructure development, awareness campaigns, and sustainable management practices, the scheme has enhanced public health and well-being in many communities. However, addressing challenges related to implementation, maintenance, and equitable distribution is essential to maximize the scheme's impact and ensure long-term benefits.

Achievements and Success of the Scheme

As of July 2, 2018, the Government of India had released ?47,572.75 crores since 1993 under the MPLADS scheme, with 94.99% of this amount utilized. Currently, ?3,940 crores are disbursed annually for the scheme. The top five states with the highest utilization-to-released fund ratio are Telangana (101.42%), Sikkim (100.89%), Chhattisgarh (99.6%), Kerala (99.3%), and West Bengal (98.65%). The bottom five states are Uttarakhand (87.22%), Tripura (88.46%), Jharkhand (88.93%), Rajasthan (90.16%), and Odisha (90.54%). Among Union Territories, Lakshadweep (111.68%), Andaman & Nicobar Islands (105.68%), and Delhi (104.1%) have the highest ratios.

In the fiscal year 2017-2018, most MPLADS funds were allocated to 'railways, roads, pathways, and bridges' (43%) and 'other public activities' (23%). Sectors such as education, health, water, and sanitation received comparatively less funding.

Challenges and Criticism

The Comptroller and Auditor General of India (CAG) conducted a performance audit of 128 District Authorities across 35 states and Union Territories for the period from 2004-05 to 2008-09, with findings published in a 2010 report. The audit revealed significant issues, including rule violations and corruption. Some District Authorities sanctioned work without MPs' recommendations or approved projects at inflated costs. In nearly 100 districts, funds were misused to create non-permissible assets such as office buildings for government or private entities and facilities for religious institutions. In ten states, costs sanctioned for Registered Societies or Trusts exceeded the ceiling of ?25 lakhs. Additionally, in nine states and Union Territories, MPs directly recommended implementation agencies, contrary to the guidelines.

The audit also uncovered cases of unspent funds and unfruitful expenditures. In eleven states and Union Territories, ?8.50 crore was wasted on incomplete works that were suspended or abandoned. Furthermore, unspent balances left by predecessor Rajya Sabha MPs in ten states were not transferred to new MPs.

There were significant delays in sanctioning works and a lack of proper monitoring. About 90% of the audited District Authorities did not maintain asset or work registers. The Ministry failed to ensure the timely receipt of monthly progress reports, and the effectiveness of state-level monitoring committees was questionable. Moreover, 86 District Authorities in 23 states and Union Territories did not inspect any work during the audit period.

Recommendations for Improvement

A review of available data and recommendations from various institutions concludes that the scheme is unique and beneficial for enhancing the developmental profile of the states. It connects MPs with their constituents and enables citizens to evaluate if spending aligns with promises. Therefore, the scheme should not be scrapped but improved by addressing loopholes and implementing corrective measures for better execution. Additionally, 'best practices' from across the country can be adopted or innovated upon. The following alternatives can be considered:

Regular Monitoring: Increase emphasis on regular monitoring by District Authorities. For instance, in Varanasi, the practice of conducting random inspections by the District Authority before releasing the second installment and after project completion has proven effective. Implementing agencies could also engage the local community in voluntary supervision of projects. Establishing arrangements for asset maintenance or outsourcing this maintenance could be beneficial, given that public asset maintenance is often a weak point.
Constituent Needs Assessment: Conduct surveys throughout the constituency to assess constituent needs accurately, involving NGOs and the local community in the process. After identifying these needs, implementation can be aligned with the determined requirements.
Annual Impact Assessment: Conduct annual impact assessment studies at the constituency level to evaluate the benefits of the implemented works for the broader community.
Lapsable Funds: Address the issue of large and increasing unspent balances by making funds lapsable. This approach ensures that unused funds can be redirected for other purposes.

Conclusion

MPLADS is an essential scheme for utilizing significant amounts of money to provide various adequate facilities like durable community assets, roads, electricity, drinking water, health, education, and sports. Since its inception in 1993, funds allocated per MP have increased from ?5 lakhs to ?5 crores (2011-12). Enhancing the scheme's effectiveness requires several key actions: increased regular monitoring by District Authorities, including random inspections, involving the local community in voluntary supervision, arranging or outsourcing asset maintenance, conducting surveys with NGOs and the local community to assess constituent needs accurately, and conducting annual impact assessment studies. Making funds lapsable can address the issue of large, unspent balances, ensuring unused funds are redirected effectively.

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Article Compiled by:-

Jamil Riyaz Ansari

(LegalMantra.net Team)

Disclaimer: Every effort has been made to avoid errors or omissions in this material in spite of this, errors may creep in. Any mistake, error or discrepancy noted may be brought to our notice which shall be taken care of in the next edition In no event the author shall be liable for any direct indirect, special or incidental damage resulting from or arising out of or in connection with the use of this information Many sources have been considered including Newspapers, Journals, Bare Acts, Case Materials , Charted Secretary, Research Papers etc.