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.