Union Cabinet Approves Restoration, Continuation Of MPLADS After COVID-Induced Suspension

The MPLADS is a scheme fully funded by the Government of India with an aim to enable MPs to recommend developmental works, primarily in their constituencies.

New Delhi: Union Cabinet on Wednesday approved the restoration and continuation of the Member of Parliament Local Area Development Scheme (MPLADS) that was suspended in view of the Covid-19 pandemic. 

The announcement was made by Information and Broadcasting Minister Anurag Thakur while addressing a press conference after the Union cabinet meeting presided over by Prime Minister Narendra Modi. The scheme has been continued for the remaining part of the financial year 2021-22 and up to 2025-26.

The Ministry will release the MPLADS fund at the rate of Rs. 2 crores per Member of Parliament (MP) for the remaining period of FY 2021-22 in one installment and at the rate of Rs. 5.00 crore per annum per MP during FY 2022-23 to FY 2025-26 in two installments of Rs.2.5 crore each. 

The MPLADS is a Central Sector Scheme fully funded by the Government of India with an aim to enable MPs to recommend developmental works in the areas such as drinking water, primary education, public health, sanitation, and roads, among others, primarily in their constituencies.   

The annual fund entitlement per MP constituency under this scheme is Rs.5 crore, released in two installments of Rs 2.5 crore each, subject to the fulfillment of conditions as per the MPLADS guidelines.

A total of 19,86,206 works and projects have been completed with the financial implication of Rs. 54171.09 crore since the scheme was launched.

In a Cabinet meeting on April 6 last year, it was decided to temporarily suspend the scheme to place the fund at the disposal of the Ministry of Finance for battling the raging Covid-19 pandemic. 

But as the Covid cases are seen to be ebbing across the country, the Union Cabinet decided to continue the scheme.

The restoration of MPLADS will resume the community development projects in the field which are halted due to fund crunch. It will restart fulfilling the aspirations and developmental requirements of the local community and the creation of durable assets, the key objective of the Central scheme. It will also help in the revival of the local economy.