The Union Cabinet on Wednesday decided to restore the Member of Parliament Local Area Development Scheme (MPLADS) and an MP will get Rs 2 crore for development activities for the remainder of 2021-22 and annually Rs 5 crore thereafter.
The MPLAD Scheme was suspended temporarily in April 2020 due to the COVID-19 pandemic and its funds went into the Consolidated Fund of India.
Addressing media, Information and Broadcasting Minister Anurag Singh Thakur said that the scheme has been restored for the remaining part of Financial Year 2021-22 and up to Financial Year 2025-26.
He also said that funds will be released at the rate of Rs 2 crore per MP for the remaining period of FY 2021-22 in one installment and at the rate of Rs 5 crore per annum per MP during the financial year 2022-23 to FY 2025-26 in two installments of Rs 2.5 crore each.
The annual MPLADS fund entitlement per Member of Parliament is Rs 5 crore, released in two installments of Rs.2.5 crore each, subject to the fulfillment of conditions as per the MPLADS guidelines.
The release of funds was suspended in April 2020 and diverted to the Finance Ministry to meet out the expenses to fight out the pandemic in the country.
The total financial implication for restoration and continuation of the MPLADS for the remaining part of the Financial Year 2021-22 and up to 2025-26 will be Rs 17,417 crore, the government said in a statement.
Since the inception of this scheme, a total of 19,86,206 works/projects have been completed with the financial implication of Rs 54,171.09 crore.