MPLAD full form is Members of Parliament Local Area Development Scheme. The Government of India created the Members of Parliament Local Area Development Scheme (MPLADS) on December 23, 1993. Its purpose is to allow MPs to suggest development projects in their constituencies, focusing on building lasting community assets according to local needs. The Ministry of Rural Development managed this scheme. However, in October 1994, the Ministry of Statistics and Programme Implementation (MOSPI) took over its administration. The MPLADS is a government-funded scheme in India. Each MP constituency receives an annual fund allocation of Rs. 5 crore. MPs must propose projects yearly that cost at least 15% of the MPLADS allocation for regions inhabited by Scheduled Castes and 7.5% for areas inhabited by Scheduled Tribes. Nominated members of both the Rajya Sabha and the Lok Sabha can recommend projects from any part of the country. Local Area Development Scheme (MPLADS) is an important topic for the UPSC Exam Preparation; it comes under the Welfare Schemes under the General Studies Paper-2 (Mains). Join our Online classes for UPSC, the best online coaching for UPSC CSE.

In this article, we will understand the Local Area Development Scheme (MPLADS). All these dimensions are important for competitive examinations like IAS, IPS, IFS, etc. Considering this, the Testbook provides the best quality notes for UPSC Exams. 

What is Member of Parliament Local Area Development Scheme (MPLADS)?

The Members of Parliament Local Area Development Division (MPLADD) is responsible for executing the Members of Parliament Local Area Development Scheme (MPLADS). Under this scheme, each MP can propose projects up to Rs. 5 Crores annually to be undertaken in their respective constituencies. Rajya Sabha MPs can suggest projects in one or more districts within the state they represent. Nominated Members of the Lok Sabha and Rajya Sabha have the flexibility to choose one or more districts from any state in the country for their preferred projects under the scheme. The Ministry has issued comprehensive guidelines for the MPLADS Scheme, covering its implementation and monitoring. The department has taken all necessary measures to ensure the successful execution of the scheme in the field.

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Salient Features of MPLADS Scheme

• MPLADS is a centrally supported plan system wholly funded by the government of India, with funding sent directly to district administrations through grants in assistance.
• Developmental works based on locally perceived needs and always open for general public use are qualified under the plan.
• The program prioritizes activities related to national goals, such as the supply of drinking water, public health, education, sanitation, roads, and so on.
• The funds made available under the plan are non-renewable. Funds not distributed in a given year are carried forward to the following year, subject to eligibility.
• Under the arrangement, MPs have a consultative role. They suggest their choice of works to the relevant district authorities, who carry them out by the specified processes of the relevant state government.
• The District authority can investigate the eligibility of works sanction money, pick implementing agencies, prioritize works, oversee overall execution, and monitor the scheme.
• The district authorities work via line departments, local self-governments, or other government entities. In certain circumstances, the district authorities assign the task to reputable non-governmental groups.
• Members of the Lok Sabha have the authority to propose projects in their respective constituencies.
• The Rajya Sabha members can approve works anywhere in the state from where they were elected.
• Members of the Lok Sabha and Rajya Sabha who have been nominated may choose works for execution anywhere in the country.

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CAG Report on MPLAD Scheme

The performance audit of 128 District Authorities from 35 states/UTs was conducted by the Comptroller and Auditor General of India (CAG). The audit covered the period from 2004-05 to 2008-09; the report was published in 2010.

The CAG observed instances of rule violations and corruption:

• Faulty sanctioning of works occurred in some cases, where District Authorities approved projects without the recommendation of MPs or at a higher cost than estimated.
• Non-permissible assets, such as office buildings for government or private entities and works for religious institutions, were created using funds in nearly 100 districts.
• In 10 states, the costs sanctioned for Registered Societies/Trusts exceeded the prescribed limit of Rs. 25 lakhs.
• MPs in 9 states/UTs directly recommended an implementation agency, which goes against the established norms.
• Unfruitful expenditure of Rs. 8.50 crore was incurred in 11 states/UTs due to the suspension or abandonment of incomplete works.
• Unspent balances from the previous Rajya Sabha MPs in 10 states were not carried forward to the new MPs.

The audit also highlighted the following issues:

• Delays in sanctioning works were identified.
• 90% of the audited District Authorities did not maintain an asset/work register.
• The Ministry should have ensured timely receipt of monthly progress reports.
• The functioning of state-level monitoring committees needed to be more questionable.
• 86 District Authorities from 23 states/UTs did not inspect any work from 2004-05 to 2008-09.

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Constitutionality of the Scheme

• The Indian Constitution does not recognize a clear division of powers.
• Even though MPs have been granted a supposedly executive function, their duty is confined to recommending’ works, with local governments carrying them out.
• As a result, the design does not contradict the principle of separation of powers.
• The Indian Constitution is quasi-federal in character.
• Article 282 stated that the Union and the State have the authority to provide grants for a purpose regardless of whether the subject matter of the purpose is listed in the Seventh Schedule, as long as the purpose has a “public purpose” as defined by the Constitution.
• Furthermore, the Scheme fits under the definition of “public purpose” since it aims to satisfy the growth and welfare of the State, as stated in the Directive Principles of State Policy.
• The plan also has strong accountability procedures because the RTI Act governs it.

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Implementation of MPLAD Scheme

• MPs must submit their choice of the nodal district to the Ministry of Statistics and Programme Implementation in a prescribed format. 
  • They should also provide a copy to the selected district's State Government and District Magistrate.
• The Government of India allocates an annual entitlement of Rs. 5 crores in two equal installments. This amount is given to the District Authority of the chosen nodal district.
• The District Authority is responsible for identifying the Implementing Agency. 
  • The chosen agency should be able to execute the eligible work in a qualitative, timely, and satisfactory manner.
• All recommended works must be sanctioned within 75 days from the receipt of the recommendation after completing all formalities. 
  • If a work is not sanctioned within the specified time period, the District Authority should inform the MPs about the rejection within 45 days of receiving the recommendation.
• The MPLADS scheme allows for converting projects into individual/stand-alone projects under Central and State Government schemes, provided they meet the MPLADS eligibility conditions.
• Funds from local bodies can be pooled with MPLADS works, but funds from other sources should be utilized first. MPLADS funds should be released later to ensure the successful completion of the project.
• Once a work under the Scheme is completed, it should be available for public use.

MPLADS Guidelines

The government introduced the MP Local Area Development Scheme Guidelines in June 2016. Here are some key details from these guidelines:

The guidelines specify that MPLAD funds can be utilized for the implementation of the following initiatives:

• Swachh Bharat Mission
• Accessible India Campaign
• Water conservation through rainwater harvesting systems
• Sansad Adarsh Gram Yojana
• MPLADS funds can be combined with MNREGS and Khelo India Schemes to create lasting assets.

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Issues Related to MPLAD Scheme

• Violation of Federalism: The Union Government is restricted to spending only on matters within its subject domain per the seventh schedule. MPLADS infringes upon the jurisdiction of local self-governing institutions, thereby violating Part IX and IX-A of the Constitution.
• Conflict with Separation of Powers: The scheme disrupts the constitutional framework of separation of powers as MPs become involved in executive functions.
• Lapses in Implementation: The MPLADS scheme allows MPs to utilize funds as a means of patronage, leading to potential misuse. The CAG has identified instances of financial mismanagement and inflated expenditure. There are also allegations of a nexus between MPs and private firms.
• Lack of Statutory Backing: The MPLAD Scheme lacks a statutory framework, making it subject to the discretion of the ruling government.
• Commission Recommendations: The National Commission to Review the Working of the Constitution in 2002 recommended the immediate discontinuation of the MPLAD scheme due to its inconsistency with the principles of federalism and the distribution of powers. The 2nd Administrative Reforms Commission's report in 2007 echoed similar concerns.

Way Forward

While the Supreme Court ruling may have resolved the constitutional aspects of the MPLAD scheme, several implementation-related concerns persist. Addressing these issues can be achieved through the following measures:

1. Enhanced transparency and rigorous monitoring of both allocated funds and sanctioned projects are crucial.
2. Expanding the scheme's inclusivity by involving citizens in the decision-making process regarding which projects should be funded through MPLAD resources.
3. Introducing a mechanism for the judicious utilization of lapsable funds, which can encourage MPs to optimize their fund allocation and prevent the accumulation of unutilized resources.

Given the decentralized nature of the MPLAD scheme, with effective oversight and a sufficient display of political commitment, it can function as an invaluable tool for grassroots development.

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