Members of Parliament Local Area Development Scheme

Members of Parliament Local Area Development Scheme (MPLADS) is a scheme formulated by Government of Indiaon 23 December 1993 that provides that each member of parliament of India has the choice to suggest to the Head of the District works to the tune of ₹5 crore (US$750,000) per year, to be taken up in his/her constituency. Initially, this scheme was administered by Ministry of Rural Development. Later, in October 1994, Ministry of Statistics and Programme Implementation (MOSPI) has been looking into its working. Elected Members of Rajya Sabha representing the whole of the State as they do, may select works for implementation in one or more district(s) as they may choose. Nominated Members of the Lok Sabha and Rajya Sabha may also select works for implementation in one or more districts, anywhere in the country. The allocation per MP per year stands increased to ₹2 crore (US$300,000) from the year 1998-1999 which has been further enhanced to ₹5 crore (US$750,000) from the year 2011.[1] It also allows MPs to spend up to ₹10 lakh (US$15,000) in any other constituency in India.

Since start there have been reports of malpractices in running the scheme and there have been demands to scrap it. In 2006, a scandal was exposed by a TV Channel, that showed MPs taking bribe for handing over project work under the MPLADS. A seven - member committee was set up to probe the matter.

Some new guidelines for MPLADS were announced by MOSPI :- 

• 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. 
• For smaller projects costing less than ₹2 lakh (US$3,000), the entire amount would be released at one go. 
• No project costing less than ₹1 lakh (US$1,500) would be sanctioned with exception in the case of essential projects, such as installation of hand pumps, and purchase of computers and their accessories, solar electric lamps, chaupals and equipments . 
• The basket of works that could be taken up under the scheme had been widened to include projects such as the purchase of books for libraries, and ambulances and hearse vans that would be owned and controlled by district authorities. 
• The purchase of Microsoft Office software along with the training of two teachers per school would be now allowed as part of an effort to promote computer literacy in the country. 
• MPs would be allowed to spend up to ₹10 lakh (US$15,000) a year on projects in any State or Union Territory other than the one from where they were elected. 
• A limit of ₹50 lakh (US$75,000) per annum has been imposed on contributions to trusts and societies so that more money was available for community-related works.