What is MPLAD Funds or Sansad Nidhi Yojna: Usage, Amount and Guidelines

Learn all about MPLAD Fund also known as Sansad Nidhi Yojna which has been suspended for 2 years to use the Fund's amount in the fight against COVID-19.

MPLAD Funds or the Members of Parliament Local Area Development Scheme is a fund scheme (सांसद निधि योजना) which was formulated by the Government of India on December 23rd, 1993. The fund, or scheme, enables the Members of Parliaments to recommend to the District Collector developmental work in their individual constituencies. The main emphasis here should be upon the creation of community assets which are not only durable but also based on the needs of the local areas. 

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Fund Name Members of Parliament Local Area Development Scheme (MPLAD) or सांसद निधि योजना
Website mplads.gov.in
Amount Rs.5 Crores per annum
What it is about? Each MP has the choice to suggest to the District Collector for works to the tune of Rs.5 Crores per annum to be taken up in his/her constituency.
Launched in 1933
Current Status Suspended for 2 Years

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With the scheme, every Member of Parliament gets a fund amounting to INR 5 crores per annum for their constituency. While members of the Lok Sabha can recommend works within their constituencies, the elected members of the Rajya Sabha are allowed to recommend works within the State where they have been elected. Furthermore, nominated members of both the Lok Sabha as well as Rajya Sabha can recommend works anywhere in the country. 

MPLAD Fund Background

The Members of Parliament Local Area Development Scheme, most commonly known as the MPLAD funds, was first launched in the year 1993, during the governance of Narasimha Rao. The main aim was to provide funds for the developmental works which would be recommended by Members of Parliament. 

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Initially, between 1994-95 and 1997-98, the MPs were entitled to recommend developmental works to the tune of INR 1 Crore annually. Some years later, the annual entitlement was increased to INR 2 crore per annum. In 2011-12, the UPA Government further enhanced the entitlement to INR 5 Crore per Member of Parliament. According to the Guidelines on Members of Parliament Local Area Development Scheme (MPLADS) published by the Ministry of Statistics and Programme Implementation in June 2016, the main aim of the scheme is to enable the different Members of the Parliament to recommend developmental works in their constituencies. This could include works related to drinking water, education, public health and sanitation as well as the construction of better roads, among other things.

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The guidelines recommend the MPs to suggest works amounting to at least 15% of their MPLADS entitlement for the year for areas inhabited by SCs and 7.5 per cent for areas inhabited by STs. 

Types of Projects Under MPLADS

The guidelines for the MPLADS, which the Ministry has laid down, suggests a lot of different developmental works. This includes the construction of railway halt stations, providing recognised educational bodies, cooperative societies and other organisations with financial assistance, installing rainwater harvesting systems as well as CCTV cameras. 

Current Scenario of MPLADS

Due to the spread of the COVID-19 pandemic throughout the country, the Union Government has decided to temporarily suspend the MPLAD fund scheme for two years, namely the period between 2020-21 and 2021-22. The total consolidated amount of the MPLAD Funds for these two years amount to around INR 7,900 Crores, which will be integrated with the funds that are being used to combat the virus. 

According to sources, the funds from the scheme will be used for screening, medical testing as well as providing other facilities that are required to fight COVID-19. Additionally, the same funds will be used to install infrared thermometers, personal protective equipment (PPE) kits, thermal scanners as well as ICU ventilators in hospitals and medical institutions all across the country. 

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