Centre restores MPLADS funds after COVID freeze, to dish out Rs.17,417 cr
New Delhi: The government on Wednesday restored the Member of Parliament Local Area Development Scheme (MPLADS) that was suspended due to Covid-19 pandemic. The decision for restoration and continuation of MPLADS for the remaining part of financial year 2021-22 and up to financial year 2025-26 was taken during the Union Cabinet meeting chaired by Prime Minister Narendra Modi.
The government feels that restoration of MPLADS will restart the community developmental projects that were stopped due to lack of funds under MPLADS and help in reviving the local economy.
The MPLADS is a Central government scheme to enable MPs to carry out development works in the areas of drinking water, primary education, public health, sanitation and roads, etc. 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.
However, for managing the health and to control Covid-19, the Union Cabinet in its meeting held on April 6, 2020, had decided not to operate MPLADS during the FY 2020-21 and 2021-22 and to instead place the fund at the disposal of the ministry of finance.
“As the country is now on the road to economic recovery and the scheme continues to be beneficial for the creation of durable community assets, in fulfilling the aspirations of locally felt needs of the community, in skill development and creation of jobs across the country, thereby helpful in achieving the objective of Atma Nirbhar Bharat. Accordingly, the Union Cabinet has now decided to restore Members of Parliament Local Area Development Scheme (MPLADS) during the remaining part of financial year 2021-22 up to 2025-26, co-terminus with the period of 15th Finance Commission,” a statement from the government said.
The ministry will release Rs 2 crore per Member of Parliament for the remaining period of FY 2021-22 in one instalment and Rs 5 crore per annum per MP during FY 2022-23 to FY 2025-26 in two instalments of Rs 2.5 crore each. The total financial implication for restoration and continuation of MPLADS for the remaining part of the financial year 2021-22 and up to 2025-26 will be Rs 17,417 crore.
