MPLADS Funds

MPLADS Funds

  • Context:

  • A recent analysis by The Hindu regarding the Members of Parliament Local Area Development Scheme (MPLADS) has revealed a significant trend where funds are being diverted to Uttar Pradesh by MPs associated with other states.

  • The study covered around 21,000 works completed between 2023 and 2026

  • Members of Parliament Local Area Development Scheme (MPLADS):

  • MPLADS is a Central Sector Scheme, fully funded by the Government of India. This Scheme was announced on December 23, 1993 by the then Prime Minister of India in the Parliament.

  • Main Objective: To enable each MP to recommend works of developmental nature with emphasis on the creation of durable community assets based on the locally felt.

  • Nodal Ministry: Ministry of Statistics and Programme Implementation

  • Each MP is allocated an amount of Rs. 5 crores per annum.

  • each Member of Parliament is required to give his/ her choice of a Nodal District and recommend eligible works.

  • There shall be ceiling of Rs. 25 lakhs in a financial year per MP (except in case of calamity).

  • Guidelines for Fund Utilisation:

  • Lok Sabha MPs are generally mandated to recommend works within the district(s) that their constituency encompasses.

  • Rajya Sabha MPs can recommend works only within the State from which they are elected.

  • Nominated MPs can choose to recommend works anywhere in the country.

  • Works not Permissible under MPLADS

  • operation and maintenance of assets

  • Construction of residential buildings

  • Contribution to Relief Funds (State/centre/UT)

  • Pooling funds for CSR

  • Any grants and loans, etc.

  • Key Findings of the Analysis:

  • The "Out-of-Area" Trend:

  • The data reveals that 21 MPs (out of 530 analysed) accounted for all the spending on works outside their registered state or constituency.

  • UP Dominance:

  • Of the more than ₹18 crore spent on such out-of-area works, a staggering 84% was directed to districts in Uttar Pradesh.

  • This is despite the fact that Uttar Pradesh already utilizes more than twice as much MPLADS funds as the second-ranked state, Tamil Nadu.

  • Regional Imbalance:

  • In several instances, funds were transferred from MPs associated with states having lower per capita incomes to Uttar Pradesh.

  • Case Study by taking the example of Mr. Ghulam Ali Khatana:

  • Mr. Khatana is a Rajya Sabha MP associated with Jammu & Kashmir and a member of the Scheduled Tribe (Gurjar/Gujjar) community.

  • Despite his association with J&K, he spent nearly ₹12 crore (accounting for over 95% of his total MPLADS expense) to install LED lights in various districts of Uttar Pradesh.

  • This diversion is notable because Jammu & Kashmir received only 0.6% of the total utilised MPLADS funds during this period and accounted for just about 1% of completed works.