Why in News?

• Ministry of Statistics and Programme Implementation issued a circular granting one-time dispensation for utilizing funds under the Members of Parliament Local Area Development Scheme to address the challenges in the fight against COVID-19.

Members of Parliament Local Area Development Scheme (MPLADS):

• The MPLADS is an on-going Central Sector Scheme which was launched in 1993-94.
• The Scheme enables the Members of Parliament to recommend works for creation of durable community assets based on locally felt needs to be taken up in their constituencies in the area of national priorities namely drinking water, education, public health, sanitation, roads etc.
• The Ministry of Statistics and Programme Implementation is responsible for the policy formulation, release of funds and prescribing monitoring mechanism for implementation of the Scheme.

Features

• The annual MPLADS fund entitlement per MP constituency is Rs. 5 crore.
• MPs are to recommend every year, works costing at least 15 % of the MPLADS entitlement for the year for areas inhabited by Scheduled Caste population and 7.5 % for areas inhabited by S.T. population.
• In order to encourage trusts and societies for the betterment of tribal people, a ceiling of Rs. 75 lakh is stipulated for building assets by trusts and societies subject to conditions prescribed in the scheme guidelines.
• Lok Sabha Members can recommend works within their Constituencies and Elected Members of Rajya Sabha can recommend works within the State of Election (with select exceptions).
• Nominated Members of both the Rajya Sabha and Lok Sabha can recommend works anywhere

Implementation

• A Member of Parliament shall give his/ her choice of Nodal District in a prescribed format to the Ministry of Statistics and Programme Implementation with copy to the State Government and to the District Magistrate of the chosen District.
• The annual entitlement of Rs 5 crore shall be released, in two equal instalments of Rs 2.5 crore each, by Government of India directly to the District Authority of the Nodal District of the Member of Parliament concerned.
• The District Authority shall identify the Implementing Agency capable of executing the eligible work qualitatively, timely and satisfactorily.
• It shall be responsible for timely and effective implementation of such works.
• All recommended eligible works should be sanctioned within 75 days from the date of receipt of the recommendation, after completing all formalities.
• The District Authority shall, however, inform MPs regarding rejection, if any, within 45days from the date of receipt of recommendations, with reasons thereof.