Union Cabinet approves restoration, continuation of MPLADS up to period of 15th Finance Commission

NEW DELHI: The Union Cabinet on Wednesday approved the restoration and continuation of the Member of Parliament Local Area Development Scheme (MPLADS) during the remaining part of the financial year 2021-22 and up to the financial year 2025-26 co-terminus with the period of 15th Finance Commission.

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

The MPLADS is a central sector scheme fully funded by the 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 in the areas of drinking water, primary education, public health, sanitation and roads, etc primarily in their constituencies.

The annual MPLADS fund entitlement per Member of Parliament (MP) constituency is Rs 5 crore, released in two instalments of Rs 2.5 crore each, subject to the fulfilment of conditions as per the MPLADS Guidelines.

For managing the health and adverse impacts of COVID-19, the Cabinet in its meeting held in April 2020, had 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 covid 19 pandemic.

As the country is now on the road to economic recovery, the Union Cabinet has now decided to restore MPLADS during the remaining part of FY 2021-22 and to continue MPLADS up to 2025-26, co-terminus with the period of 15th Finance Commission.