About:

• The Members of Parliament Local Area Development Scheme (MPLADS) is meant to enable Members of Parliament to recommend works of developmental nature with emphasis on 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 has been responsible for the policy formulation, release of funds and prescribing monitoring mechanism for implementation of the Scheme.

Features:

• The MPLADS is a Plan Scheme fully funded by the Government of India. The annual MPLADS fund entitlement per MP constituency is Rs. 5 crore.
• MPs are to recommend every year, works costing at least 15 percent of the MPLADS entitlement for the year for areas inhabited by Scheduled Caste population and 7.5 per cent 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 in the country.
• All works to meet locally felt infrastructure and development needs, with an emphasis on creation of durable assets in the constituency are permissible under MPLADS as prescribed in the scheme guidelines. 
• Expenditure on specified items of non durable nature are also permitted as listed in the guidelines.

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.
• Each MP shall recommend eligible work on the MP’s letter head duly signed by the MP to the district authority.
• 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. 
• MPLAD Scheme can be converged in individual/stand-alone projects of other Central and State Government schemes provided such works of Central/State Governments Schemes are eligible under MPLADS. 
• Funds from local bodies can similarly also be pooled with MPLADS works. 
• One MP – One Idea: Based on the innovative ideas received from the local people regarding developmental projects, a ‘One MP – One Idea’ Competition may be held in each Lok Sabha constituency annually to select the three best innovations for cash awards and certificate of appreciation for the next five best innovations.

Why in News?

Recently, the government announced suspension of MPLADS for two years, due to the COVID-19 pandemic.

During the ongoing Parliament session, members of several parties are demanding the restoration of the suspended MPLAD Scheme Fund.

Rationale behind the two­ year suspension of theMPLAD scheme

Suspension of the MPLAD Scheme will make Rs 7,800 crore available to the government which will  go to the Consolidated Fund of India to fight COVID-19 .

Arguments raised by opposition parties against the suspension of MPLADS:

• It will adversely impact grass-root level work as the MPLAD is meant to execute development work in the constituency, suspending it is a huge disservice to the constituents and will undermine the role and functions of MP.
• During the times of COVID-19 pandemic, MPLADS funds could have been used for procurement of such supplies that will help in fighting against the disease.
• By suspending MPLADS, the government will take away the expenditure which would attend to unique requirements of an area. This centralisation goes against federalism, development.
• As the scheme attempts to address large variations in infrastructure across the states, the suspension will make it difficult to reduce inequality in development .
• MPLADShas enabled MPs to play a leadership role in the developmental process of his constituency and sort out its day-to-day problems. 
• The suspension of the MPLADS for 2020-21 and 2021-22 in the wake of the pandemic has done away with this vital role of MPs.

References:

1. https://www.thehindu.com/opinion/lead/mplads-its-suspension-and-why-it-must-go/article31504548.ece
2. https://indianexpress.com/article/explained/how-mplad-scheme-works-and-how-far-its-suspension-will-help-covid-19-fight-6380556/
3. https://www.thehindu.com/opinion/op-ed/in-defence-of-mplads/article31845286.ece