The amount to be released in the first instalment for works proposed under the Member of Parliament Local Area Development Scheme (MPLADS) has been increased. The MPLADS allows MPs to suggest works to the Head of District to be taken up in their constituency. Projects implemented by government agencies would now be provided 75 per cent of the project cost as the first instalment, while those implemented by non-governmental agencies would be provided 60 per cent, according to Union Minister for Statistics and Programme Implementation M.S. Gill in June 2011. At present, only 50 per cent of the estimated cost is released as the first instalment, irrespective of the nature of the project, which led to complaints of delays in completion.
Conditions had been further relaxed for smaller projects costing less than Rs. 2 lakh. For them, the entire amount would be released at one go. Besides, in a bid to ensure that funds were not spread too thinly, no project costing less than Rs. 1 lakh would be sanctioned. Exceptions, however, would be made in the case of essential projects, such as installation of hand pumps, and purchase of computers and their accessories.
MPs would also be allowed to spend up to Rs. 10 lakh a year on projects in any State or Union Territory other than the one from where they were elected. “The aim is to promote national unity and fraternity among the people at the grassroots level.”
In an important departure from the past, a limit of Rs. 50 lakh per annum has been imposed on contributions to trusts and societies so that more money was available for community-related works.
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