Cabinet approves restoration of MP development funds


 The Union Cabinet, chaired by Prime Minister Narendra Modi, on Wednesday approved the restoration of the Member of Parliament Local Area Development Scheme (MPLADS) which was suspended due to the Covid-19 pandemic last year.

Addressing media, Information and Broadcasting Minister Anurag Singh Thakur said that the scheme has been restored for 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 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 instalments of Rs.2.5 crore each, subject to the fulfillment of conditions as per the MPLADS guidelines.

The release of fund was suspended in April 2020 and diverted to the Finance Ministry to meet out the expenses to fight out the pandemic in the country.

“For managing the health and adverse impacts of Covid-19 in the society, the Cabinet, in its meeting held on 6th April 2020, had decided not to operate MPLADS during the FY 2020-21 and 2021-22 and place the fund at the disposal of Ministry of Finance for managing the impacts of Covid 19 pandemic,” the Minister said.

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.


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