MPLADS - Member of Parliament Local Area Development Scheme

The Member of Parliament Local Area Development Division is entrusted with the responsibility of implementation of Member of Parliament Local Area Development Scheme (MPLADS). The scheme was started in 1993. The allocation was increased from 2 crores to 5 crores from 2011-12.

An inititive by Ministry of statistics and Programme implementation is "One MP one idea" scheme to faciliate generation of new innovative ideas from the public.

Under the scheme, 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. 

The Rajya Sabha Member of Parliament can recommend works in one or more districts in the State from where he/she has been elected. 

The Nominated Members of the Lok Sabha and Rajya Sabha may select any Districts from any State in the Country for implementation of their choice of work under the scheme. 

The Department has issued the guidelines on Scheme Concept, implementation, and monitoring. The Department has initiated all necessary steps to ensure that the scheme is successfully implemented in the field. The progress of the works being implemented under the scheme is monitored on a regular basis.

             

GUIDELINES ON MEMBERS OF PARLIAMENT LOCAL AREA DEVELOPMENT SCHEME

BACKGROUND

On 23rd December 1993 Prime Minister had announced the Members of Parliament Local Area

Development Scheme (MPLADS) in the Parliament. Initially the MPLADS was under the control

st of the Ministry of Rural Development. 

The MPLAD Scheme was transferred to the Ministry of Statistics and Programme Implementation in October 1994. The Guidelines were subsequently revised in in August 2012. The present comprehensive revision of guidelines is based on the experience gained over 18 years and having considered the suggestions made by the various stakeholders including Members of Parliament, both the Committees of the Lok Sabha/Rajya Sabha, NABARD consultancy services (NABCONS) and Comptroller and Auditor General of India in its Reports.

The objective of the scheme is to enable MPs to recommend works of developmental nature with emphasis on the creation of durable community assets based on the locally felt needs to be taken up in their Constituencies. Right from inception of the Scheme, durable assets of national priorities viz. drinking water, primary education, public health, sanitation and roads, etc. are being created.

In 1993-94, when the Scheme was launched, an amount of Rs. 5 lakh per Member of Parliament was allotted which became Rupees one crore per annum per MP constituency from 1994-95. This was stepped up to Rs. 2 crore from 1998-99 and now it has been increased to Rs.5 crore from the financial year 2011-12.

A Department each in State/UTs is designated as the Nodal Department with the overall responsibility of supervision, monitoring and coordination of the MPLADS implementation with the districts and other Line Departments. The Government of India informs the State Nodal Department about the MPLADS funds released to the District Authorities. The District Authorities report the status of MPLADS implementation to the Government of India and State Nodal Department.

FEATURES

• The MPLADS is a Plan Scheme fully funded by Government of India. The annual MPLADS fund entitlement per MP constituency is Rs. 5 crore.
• Lok Sabha Members can recommend works within their Constituencies and Elected Members of Rajya Sabha can recommend works within the State of Election and Nominated Members of both the Rajya Sabha and Lok Sabha can recommend works, anywhere in the country.
• A Member of Parliament shall give his choice of Nodal District to the Ministry of Statistics and Programme Implementation with copy to the State Government and to the District Magistrate of the chosen District. If a Lok Sabha Constituency is spread over more than one District, the Member of Parliament can choose any one of the Districts as Nodal Districts in his/her constituency. 
• The Rajya Sabha MP can choose any District in his/her State of Election as Nodal District. 
• Nominated Members of both Rajya Sabha and Lok Sabha can choose, any District in the country as Nodal District.
• All works to meet locally felt infrastructure and development needs, with an emphasis on creation of durable assets in the constituency are permissible under MPLADS 
• Development of Areas inhabited by Scheduled Caste and Scheduled Tribe: MPs are to recommend every year, works costing at least 15 per cent of the MPLADS entitlement for the year for areas inhabited by Scheduled Caste population and 7.5 per cent for areas inhabited by S.T. population. In other words, out of an amount of Rs.5 crores, a M.P. shall recommend for areas inhabited by S.C. population, Rs.75 lacs out of the annual Rs.5 crores and Rs.37.5 lacs for areas inhabited by S.T. population. In case there is insufficient tribal population in the area of Lok Sabha Member, they may recommend this amount for the creation of community assets in tribal areas outside of their constituency but within their State of election. In case a State does not have S.T. inhabited areas, this amount may be utilized in S.C. inhabited areas and vice-versa. 
• It shall be the responsibility of the district authority to enforce the provision of the guideline. In order to facilitate implementation of this guideline, it will be responsibility of the district authority keeping in view the extant provisions of State and Central Government's to declare areas eligible for utilization for funds meant for the benefit of SC & ST population.
• Recommendation/Sanction of the works: Each MP will recommend works up to the annual entitlement during the financial year in the format to the concerned District Authority. The District Authority will get the eligible sanctioned works executed as per the established procedure of the State Government”. (in the matter of technical sanction, tender/non-tender, schedule of rates, etc. However, powers to grant administrative sanction/approval will continue to remain with District Authority).
• Natural & Man-made Calamities: MPLADS works can also be implemented in the areas prone to or affected by the calamities like floods, cyclone, Tsunami, earthquake, hailstorm, avalanche, cloud burst and pest attack, landslides, tornado, drought, fire, chemical, biological and radiological hazards. Lok Sabha MPs from the non-affected areas of the State can also recommend permissible works up to a maximum of Rs.10 lakh per annum in the affected area(s) in that State. The funds would be released by the Nodal district of the MP concerned to the District Authority of the affected district. MPLADS funds may be pooled by the District Authority of the affected district for works permissible in the Guidelines. The amount so transferred from the nodal district to the natural calamity affected district may be shown in the UCs as well as MPRs as amount transferred to natural calamity affected district for rehabilitation work. The Works Completion Report, Audit Certificate and Utilization Certificate for such works and funds will be provided by the District Authority of the affected districts directly to the Ministry of Statistics and Programme Implementation for overall reconciliation. No separate UC/AC/Completion Report in respect of the transferred amount would be required from the Nodal District authority in this regard while processing release of subsequent installment of MPLADS funds.
• In the event of “Calamity of severe nature” in any part of the country, an MP can recommend works up to a maximum of Rs.50 lakh for the affected district. Whether a calamity is of severe nature or not, will be decided by the Government of India. 
• Contribution of MPLADS funds to a place outside MPs constituency or outside his State/UT:If an elected Member of Parliament, finds the need, to contribute MPLADS funds, to a place outside that State/UT, Or outside the constituency within the states or both, the MP can recommend eligible works, under these Guidelines upto a maximum of Rs.10 lakh in a financial year. Such a gesture on the part of an MP will promote national unity, harmony, and fraternity among the people, at the grass roots level. In such cases, the Nodal District Authority will be fully responsible for coordination and other functions, bestowed on him in the Guidelines. The works Completion Report, Utilization Certificate and Audit Certificate, for such works, will be provided by the Implementing District Authority, to the respective Nodal District Authority from whom the funds were received.
• District Authority: District Collector/District Magistrate/Deputy Commissioner will generally be the District Authority to implement MPLADS in the district. If the District Planning Committee is empowered by the State Government, the Chief Executive Officer of the District Planning Committee can function as the District Authority. In case of Municipal Corporations, the Commissioner/Chief Executive Officer may function as the District Authority. In this regard, if there is any doubt, Government of India in consultation with the State/UT Government, will decide the District Authority for the purpose of MPLADS implementation.
• Implementing Agency: The District Authority shall identify the agency through which a particular work recommended by the MP should be executed. The executing agency so identified by the District Authority is the implementing agency. The Panchayati Raj Institutions (PRIs) will preferably be the Implementing Agency in the rural areas and works implementation will be done through Chief Executive of the respective PRI. The Implementing Agencies in the urban areas should preferably be urban local bodies and works implementation will be done through Commissioners/Chief Executive Officers of Municipal Corporations, Municipalities. Further, the District Authority may choose either Government Department unit or Government agency or reputed Non-Governmental Organization (NGO) as capable of implementing the works satisfactorily as Implementing Agencies. For purposes of execution of works through Government Departments, District Authority can engage agencies such as, Public Health Engineering, Rural Housing, Housing Boards, Electricity Boards, and Urban Development Authorities etc, as Implementing Agencies. However, whenever an NGO is selected as implementing agency, it should have the requisite expertise in the chosen field of execution. The NGO should preferably be of National repute and should be selected by a Committee under District Authority. The Implementation through NGO thereafter can follow State procedures.

IMPLEMENTATION

1. Each M.P. shall recommend eligible work on the M.Ps letter head in a format duly signed by the M.P. 
2. In case a constituency comprises of more than one district, and the MP wishes to recommend works in the district other than the Nodal District, in such cases the works list in the prescribed format shall be given to the District Authority of the Nodal District with copy to the District Authority in whose jurisdiction the proposed works are to be executed. The District Authority in whose jurisdiction, the proposed works are to be executed, will maintain proper accounts, follow proper procedure for sanction and implementation for timely completion of works. The District Authority will furnish monthly progress reports, work completion reports, and audit certificates for such works to the Nodal District Authority.
3. The District Authority shall identify the Implementing Agency capable of executing the eligible work qualitatively, timely and satisfactorily. 
4. The work and the site selected for the work execution by the MP shall not be changed, except with the concurrence of the MP concerned, but change will not be allowed once the work has commenced and expenditure liability incurred.
5. Where the District Authority considers that a recommended work cannot be executed due to some reason, the District Authority shall inform the reasons to the MP concerned, under intimation to the Government of India and the State/UT Government as early as possible but not later than 45 days from the date of receipt of the proposal.
6. The District Authority should get in advance a firm commitment about the operation, upkeep and maintenance of the proposed asset from the User Agency concerned before the execution of the work is sanctioned
7. If the estimated amount for a work is more than the amount indicated by the MP for the same, MP's further consent is necessary before the sanction is accorded
8. The work should be sanctioned and executed only if the MP concerned has allocated the full estimated cost of the work in the year. If the commitment for the full estimated amount is not forthcoming and the amount recommended by the MP is less than the estimates for the work and there are no other sources from which the deficit can be made good, then the work should not be sanctioned, as in such an eventuality, the project will remain incomplete for want of sufficient funds. MP should be intimated as early possible but not later than 75 days of the receipt of the proposal.
9. In case, recommendations received by the District Authority exceeds the entitlement of the MP, priority will be as per the principle of first received to be first considered.
10. All works for which recommendations are received in the office of the District Authority till the last date of the term of the MP are to be executed, provided these are as per norms and within the entitlement of MPLADS funds of the MP.
11. “All recommended eligible works should be sanctioned within 75 days from the date of receipt of the recommendation, after completing all formalities. The District Authority shall, however, inform MPs regarding rejection, if any, within 45 days from the date of receipt of recommendations, with reasons thereof. In case of the time limits mentioned in the section falling within the period of operation of model code of conduct notified by the Election Commission, then such period as notified by model code of conduct will not be included in the reckoning of time limits.
12. The sanction letter/order shall stipulate a time limit for completion of the work to the Implementation Agency. The time limit for completion of the works should generally not exceed one year. In exceptional cases, where the implementation time exceeds one year, specific reasons for the same shall be incorporated in the sanction letter/order. The sanction letter/order shall also include a clause for suitable action against the Implementation Agency in the event of their failure to complete the work within the stipulated time as per the State Government Procedure. A copy of the sanction letter/order shall be sent to the MP concerned.
13. Decision making powers in regard to technical, financial and administrative sanctions to be accorded under the Scheme, vest in the district level functionaries. The District Authorities will have full powers to get the works technically approved and financial estimates prepared by the competent district functionaries before according the final administrative sanction and approval. 
14. The work, once recommended by the MP and sanctioned by the District Authority may be cancelled if so desired by the MP, only if the execution of the work has not commenced and the cancellation does not lead to any contractual financial liability/ cost on the Government. If for some compelling, reasons, stoppage/abandonment of a work in progress becomes inevitable the matter should be referred to the State Nodal Department with full justification for a decision under intimation to the Government of India and to the MP concerned. Such works cannot be changed by MP even if the MP is reelected. It shall be the responsibility of the Nodal District Authority to scrutinize all such recommended works within 75 days of the last date of the term of office of the MP to accord necessary sanction as per the Guidelines and rejection, if any, to be intimated to the outgoing/former MP within 45 days with reasons. Nothing in this clause will allow any successor MP to cancel any otherwise eligible works recommended by his predecessor.
15. The District Authority should ensure that details of the work sanctioned are entered in the Input Format (Annex-IV A,B,C,D, and E) and uploaded in the MPLADS website (www.mplads.nic.in). All works already executed or under execution need to go through similar process and all entries would be made in a time bound manner. The Software Manual for Monitoring of Works under MPLADS is available on the website.
16. MPLAD Scheme can be converged in individual/stand-alone projects of other Central and State Government schemes,Funds from local bodies can similarly also be pooled with MPLADS works. Wherever such pooling is done, funds from other scheme sources should be used first and the MPLADS funds should be released later, so that MPLADS fund results in completion of the project.
17. Special provision for convergence of Member of Parliament Local Area Development (MPLADS) with MGNREGA : Funds from Member of Parliament Local Area Development Scheme (MPLADS) can be converged with MGNREGA with the objective of creating more durable assets.
18. Special provision for convergence of Member of Parliament Local Area Development (MPLADS) with Panchyat Yuva Krida Aur Khel Abhiyan (PYKKA) and Urban Sports Infrastructure Scheme (USIS) of the Ministry of Youth Affairs and Sports
19. The MPs may recommend augmentation by certain amount out of his MPLADS funds in a Centrally sponsored Scheme against central plus State share indicating the geographical area where to be implemented and the amount recommended, but will not be permitted to indicate the beneficiaries, who will continue to be as per any prior list /priority list already drawn up by the District Authority, and the list would not require a change on the request of the MP.
20. Public and community contribution to the works recommended by MPs is permissible. In such cases, MPLADS funds will be limited to the estimated amount minus the public and community contribution.
21. There are Central and State Government Schemes which provide for the public and community contribution. MPLADS funds shall not be used to substitute the public and community contribution in any Central/State Government Programme/Scheme, which includes a component of such contribution.
22. Community infrastructure and public utility building works are also permissible for registered Societies/Trusts under the Scheme, provided that the Society/Trust is engaged in the social service/welfare activity and has been in existence for the preceding three years. The existence of the Society/Trust shall be reckoned from the date it started its activities in the field, or the date of registration under the relevant Registration Act, whichever is later. 
23. Not more than Rs.25 lakh, can be spent from MPLADS fund, for one or more works of a particular Society/Trust in the lifetime of that society/trust . 
24. The MPLADS funding is not permissible to a Society/Trust, if the recommending MP or any of his/her family members is the President/Chairman or Member of the Managing Committee or Trustee of the registered Society/Trust in question. Family members would include MP and MPs spouse which would comprise of their parents, brothers and sisters, children, grandchildren and their spouses and their in-laws. 
25. As soon as a work under the Scheme is completed, it should be put to public use. For greater public awareness, for all works executed under MPLADS a plaque (stone/metal) carrying the inscription 'Member of Parliament Local Area Development Scheme Work' indicating the cost involved, the commencement, completion and inauguration date and the name of the MP sponsoring the project should be permanently erected. 
26. List of all completed and ongoing works with MPLADS funds should also be displayed at the District Authority Office and posted in the website for information of the general public. For public awareness, details of completed works may be displayed at prominent places like Tehsil/Niabat/Sub-Tehsil/ Block /Gram Panchayat offices also.
27. As per the provisions of the Right to Information Act, 2005 and the Rules framed there under, all citizens have the right to information on any aspect of the MPLAD Scheme and the works recommended/ sanctioned/ executed under it. 
28. Ambulances/Hearse Vans are already allowed to be purchased, by the District Authority/CMO/Civil Surgeon of the District on the recommendation of a Member of Parliament. The scope is now widened to allow operation of ambulance/hearse services through private organizations.
29. Minimum amount for a project: “The minimum amount sanctioned under the MPLAD Scheme for any project or work should normally not be less than Rs. 1 lakh. If, however, the District Authority is of the considered view that the work of less amount will be beneficial to the public at large, he/she may sanction the same, even if the cost of the work is less than Rs. 1 lakh”
30. Shelf of Projects The District Authority shall maintain and make available a “Shelf of Projects” including projects for SC/ST inhabited areas to MPs. The Shelf of Projects should be suggestive only, so that it provides, flexibility to the MP, to go beyond the list in order to meet the felt needs of the people. The district authority may receive suggestions from Panchayati Raj Institutions and local bodies.
31. Utilisation of MPLADS Fund for welfare of the differently abled persons – MPs may recommend upto a maximum of Rs.10 lakhs per year OR the consolidated entitled amount of their balance tenure, effective from the financial year 2011-12, at any time from their MPLADS fund for giving assistance to the physically challenged. Such assistance will be given only for the purchase of tricycles (manual/battery operated), motorized/battery operated wheelchair and artificial limbs for differently abled deserving persons.
32. Purchased of books for schools, colleges and public library: Books to the extent of Rs. 22 lakh can be purchased for schools, colleges and public libraries belonging to Central, States, UTs and Local Self-Government from MPLADS Fund.
33. Purchase of computers – Purchase of computers is permissible for Government and Government aided educational institutions.
34. Purchase of mobile library from MPLADS funds - Purchase of mobile library for educational institutes belonging to Central, State, UT and Local Self Government are permissible. 
35. New borings in place of hand pumps installed under MPLAD Scheme –New borings in lieu of the existing non-functional hand-pumps using the re-usable components of the parts of the nonfunctional hand pumps are permissible.
36. Special provisions for works in border areas, coastal and other environmentally sensitive areas (like forests, wild life, CRZ, eco-fragile areas, etc.) appropriate permission from the concerned Ministries and agencies will be needed.
37. Specific clearance from Ministry of Water Resources would invariably be required before sanctioning any work for irrigation, flood control etc. under the MPLAD Scheme on any river within 8 kilometers of international border
38. Creation of a Facilitation Centre at each District : An MP would be entitled for setting up of MPLADS Facilitation Centre in the Nodal District for which space/room would be provided by the DC/DM in the premises of Collectorate/DRDA. The capital cost of setting up of such facilities including equipments, furniture, etc. shall not exceed Rs 5 lakhs and will be met from MPLADS funds.
39. Construction of Railway Halt Station: Funds from MPLAD Scheme if so nominated by MP can be used for construction of Railway Halt Station to facilitate the local community for boarding/deboarding from the train.
40. One-MP-One Idea : In order to foster, a grass-root bottoms-up approach to innovation and development and to arrive at solutions for local problems which are sustainable and scalable, there is a need for seeking out and campaigning for ideas that have the potential to solve challenges. Accordingly, based on the innovative ideas received from the local people regarding developmental projects, an 'One MP – One Idea' Competition may be held in each Lok Sabha constituency annually to select the three best innovations for cash awards on the specific request of an MP to promote such a scheme in his/her constituency.  
41. Providing assistance to aided Institutions MPs may recommend their MPLADS funds to the aided Institutions wherein the District Authority is in a position to give a certificate that they are under the full control of the Government and are managed by the Government and may be treated at par with the Government Institutions. 
42. All other aided Institutions which are not under the control of Government but may be following the prescribed requirement for recognition by the Government should be covered under the provisions as per guidelines.
43. Assistance to Bar Associations –MPs may recommend their MPLADS funds to the Bar Associations at the Tehsil/Sub-division/District level for construction of Building of the Bar Association provided the land for it belongs to the Central, State/UT or local self-Government and subject to the provisions of para 3.21 of the MPLADS Guidelines. No MPLADS Funds will be permissible for any recurring expenditure of the Bar Association..
44. Assistance to Bar Association Library for purchase of books : MPs may recommend MPLADS funds to Bar Association Library for purchase of books upto Rs. 50,000/- (Rs. fifty thousand only) per annum for Lower and District Courts (courts at Tehsil/Sub-division/District level. 

FUND RELEASE AND MANAGEMENT

• The annual entitlement of Rs 5 crore shall be released, in two equal instalments of Rs 2.5 crore each, by Government of India directly to the District Authority of the Nodal District of the Member of Parliament concerned.
• At the time of the constitution of Lok Sabha, and election of a Rajya Sabha Member, the first instalment of Rs. 2.5 crore shall be released to the District Authority without the documents stipulated. The subsequent instalments of the continuing Members of Rajya Sabha and Lok Sabha will be released as per eligibility criteria.The first instalment of Rs. 2.5 crore at the time of constitution of Lok Sabha or election of Rajya Sabha Member will be released in the beginning of the financial year. In the remaining years, the first installment will be released in the beginning of the financial year subject to the condition that the second installment of the previous year was released for the MP concerned and also subject to furnishing of the provisional Utilization Certificate of previous year covering at least 80% of the expenditure of the first installment of the previous year.
• The second installment of the MPLADS funds will be released subject to the fulfillment of the following eligibility criteria:- (i) the unsanctioned balance amount available in the account of the District Authority after taking into account the cost of all the work sanctioned is less than Rs.1 crore; (ii) the unspent balance of fund of the MP Concerned is less than Rs. 2.5 crore; and (iii) Utilization Certificate and Audit Certificate of the immediately concluded financial year ending 31st March have been furnished by District Authority 
• Funds Non-lapsable: Funds released to the District Authority by the Government of India are nonlapsable. Funds left in the district can be carried forward for utilization in the subsequent years. Further, the funds not released by the Government of India in a year will be carried forward for making releases in the subsequent years subject to the fulfillment of criteria stipulated 
• The entitlement of funds of a Member of Parliament for a particular year is determined as under:

Period in the financial year as MP                   Entitlement

Less than 3 months                                           Nil

Up to 9 months                                          50% of the annual allocation

More than 9 months                                  100% of the annual allocation

• However, in case of sudden death or resignation of an MP, the works which may have been duly recommended and duly sanctioned as per original eligibility, not anticipating the above contingency, would have to be completed (to avoid wastage of Government funds) irrespective of any reduced entitlement noted above due to death/resignation and the new incoming MP's full entitlement would start afresh in accordance with the above formula
• In respect of elected Members of Lok Sabha, the balances of MPLADS funds left by the predecessor MP in a Lok Sabha constituency (funds not committed for works of the predecessor MP) would be passed on to the successor MP from that constituency. (In case of fresh delimitation, separate orders will be issued).
• In respect of elected Members of Rajya Sabha, the balance of funds (funds not committed for the recommended works) left in the Nodal District by the predecessor Member in a particular State on his demitting office will be equally distributed by the State Government among the successor elected Rajya Sabha Members in that State. The unspent balance of even earlier elected Rajya Sabha MPs if not already distributed, will be equally distributed among the sitting Rajya Sabha Members of the States concerned by the State Government.
• The balance of funds (funds not committed for the recommended and sanctioned works) left by the nominated Members of Rajya Sabha in the Nodal District will be equally distributed amongst the successor nominated Members of Rajya Sabha by the State Government with the approval of Government of India..
• The balance of funds (funds not committed for the recommended and sanctioned works) left by Anglo-Indian nominated Lok Sabha MPs will be equally distributed among the successor Anglo- Indian nominated Lok Sabha MPs by the State Government with the approval of Government of India.
• Completion of works/settling of accounts- The work of MPLADS shall be completed within 18 months from the date of demitting office in case of Rajya Sabha MPs or dissolution of the Lok Sabha. District Authorities shall settle and close the account of the concerned MP after completing all other formalities in another 3 months time
• Generally a vacancy caused prematurely due to resignation, death, etc. of an elected/nominated MP is filled up by election/nomination for the remaining term of the MP vacating the seat. The total term of both the MPs in such cases remains for the period of Lok Sabha and Rajya Sabha respectively. Therefore, the new MP will be treated as a successor of the MP vacating the seat prematurely and balance funds will not be distributed among other MPs but transferred to MPLADS Account of the successor MP.
• The District Authority can sanction works up to the entitlement of the MP for that year without even physical availability of funds. Funds will be released by the Government as per the eligibility criteria
• The District Authority shall maintain a separate bank account in nationalized bank for each MP for the purpose of MPLAD Scheme. The Bank account will not be changed without the approval of MOSPI. The details of the bank account shall be intimated to MOSPI for release of funds 
• The Implementing Agencies shall also deposit the funds only in a nationalized bank . Separate account will be opened for each MP for the purpose
• The District Authority shall release, 75% of the estimated cost of a sanctioned work in advance as a first instalment, if the implementing agency is a Government Agency, and 25% as second installment after sufficient progress has been achieved.
• In case of all MPLAD works upto Rs.2 lakh being undertaken by Government Agencies, the entire amount shall be released as advance in a single installment. In cases even exceeding this amount, if the State Government rules permit giving advance of 100%, then the same would be applicable to the MPLADS work also.
• In case of MPLAD works, where either the user agency or the implementing agency is private, the district authorities are authorized to release funds upto 60% of the sanctioned amount, as first installment and balance amount of 40% would be released as second/third installment as follows:-(a) 25% after 3/4 of the work is over and (b) Last 15% after satisfactory completion of works.
• The interest accrued on the funds released under the Scheme, to the District Authority is to be used for permissible works recommended by the MP concerned. 
• Administrative Expenses - The existing contingency funds of 0.5% have been increased to 2% as Administrative Expenses, of the annual entitlement of MPLAD funds. The 2% of Administrative fund shall be part of annual entitlement of Rs. 5 crore of an MP and will be distributed among the Nodal District, Implementing District(s) and the State Nodal Department and is applicable from the financial year 2011-12.

(a) The nodal department can use the amount for their administrative expenses and for the following

activities :

(1) Third party inspection-physical audit and quality check;

(2) Monitoring of works at State level; and

(3) Translating the MPLADS guidelines in their respective regional language except in Hindi.

The State/UT nodal department will carry out third party inspection- physical audit and quality

check of MPLAD works in their States in the following manner.

In each district, a selection of MPLAD works will be taken up for inspection and physical audit as per

the following criteria.

(i) All works costing 25 lacs and more will be compulsory covered.

(ii) 50 per cent of all works costing 15 to 25 lacs must be covered. For the remaining works, a

sample of at least 50 works shall be drawn up involving the judicious balance of various

parameters like cost, works in the area of SC/ST, M.P. wise work and works of societies and trust.

The nodal department will also monitor compliance of the district authorities in terms of the

guidelines for the scheme.

All complaints received from MPs in the Ministry should also required to examine and report sent to

MOSPI.

By the Nodal District, for executing the following activities,

i) Hiring of services/consultants for handling Accounts, Data Entry, uploading of data on website,

etc.

ii) Creating awareness among public about the Scheme and dissemination of information of

ongoing and completed works,

iii) Purchase of stationary,

iv) Office equipment including computer hardware/software for MPLADS planning/monitoring

(excluding laptop),

v) Telephone/fax charges, postal charges,

vi) Expenses incurred (a) to make MPLADS Works Monitoring Software and other MPLADS

portal(s) operational, (b) to get the audit of the accounts done and obtain audit certificate, and

vii) Out sourcing of technical estimates (if found necessary) in specialized cases.

ACCOUNTING PROCEDURE

The District Authority and Implementing Agencies shall maintain accounts of MPLADS funds, MPwise.

Cash Book and other Books of Accounts shall be maintained as per the State/UT Government

procedure. MPLADS funds received by the District Authority from the Government of India and the

Implementing Agencies receiving the funds from the District Authority shall be kept only in Savings

Bank Account of a nationalized Bank. Only one Account shall be maintained per MP. Deposit of

MPLADS funds by the District Authority and Implementing Agencies in the State/UT Government

Treasury accounts is prohibited.

The Audit Report should be prepared MP wise and should inter alia cover the following aspects: (i)

number of Savings/other Bank Accounts being maintained by the District Administration and the

Implementing Agencies; (ii) if any fund held in fixed deposits(Fixed deposits are not permissible);

(iii) whether interest accrued in Savings Account has been taken as receipt and utilized for the

Project; ( iv) delay, if any, in crediting the Accounts of the District Authority and the Implementing

Agencies by the receiving Bank - if so, the period of delay; (v) Whether Bank reconciliation in

respect of Cash Book balance and Pass Book balance is being done every month; (vi) The Bank

reconciliation should also cover interest accruals. The Bank reconciliation statement as on 31st

March should be attached to the Audit Report; (vii) Proper maintenance of Cash Book by the District

st Authority and Implementing Agencies; (viii) Cheques issued but not encashed as on 31 March as

per Bank reconciliation; (ix) Actual expenditure incurred out of advances to the Implementing

Agencies; and closing balances with them; (x) Diversion of funds, works prohibited and

inadmissible items of expenditure (The details along with the views of District Authority in each

case shall form part of the audit report for the District Authority to get such audit objection settled

and follow up audit in succeeding year); and (xi) Utilisation of earmarked fund for SC and ST areas.

MONITORING

Role of MPLADS Parliamentary Committees: There are two Committees of Parliament (Rajya

Sabha and Lok Sabha) on Members of Parliament Local Area Development Scheme which receive

representations from MPs and the proposals submitted by the Government of India to advise the

Ministry of Statistics and Programme Implementation, Government of India for appropriate action.

The role of the Committees is decided by the Speaker, for Lok Sabha Committee, and Chairman

Rajya Sabha for Rajya Sabha Committee on MPLADS.

Role of the Central Government

(i) The Ministry of Statistics and Programme Implementation shall monitor the overall position

of funds released, cost of works sanctioned, funds spent etc.

(ii) The Ministry will monitor the receipt of Completion Reports, Utilization Certificates, and

Audit Certificate from the District Authorities.

(iii) The Ministry will bring out Annual Report on the implementation of MPLADS including the

facts relating to physical and financial progress.

(iv) The Ministry will, hold meetings in the States and also at the Centre at least once in a year to

review the implementation of the MPLAD Scheme.

(v) The Ministry shall provide training materials for conducting training of district officers, on

MPLADS as and when these are organized by the State Governments.

(vi) The Ministry will review the utilization of funds by the District Authorities in SC and ST areas.

(vii) The Ministry will review the audit objections and issues arising out of the Audit and Utilization

Certificates.

Role of the State/UT Government:

(i) The Nodal Department will be responsible for coordination with the Ministry and proper and

effective supervision of the MPLADS implementation in the State. The State Government will

assign coordination and monitoring of MPLADS work to a department/dedicated cell under a senior

officer who is hierarchically senior in rank to the district authorities described earlier in the

guidelines. To this effect a committee under the Chairmanship of the Chief Secretary/Development

Commissioner/ Additional Chief Secretary should review MPLADS implementation progress with

the District Authorities and MPs at least once in a year. The Nodal Department Secretary and other

Administrative Department Secretaries should also participate in such meetings. State/UT

Government should furnish the minutes of the State/District Monitoring Committee meetings to the

Ministry of Statistics and Programme Implementation.

(ii) The States/UTs in which Divisional Commissioner arrangements exist, the Divisional

Commissioners should be empowered to review the MPLADS implementation progress and guide

the District Authorities.

(20)

(iii) The State/UT Government will review (a) the utilization of funds by the District Authority in SC and

ST areas; and (b) the audit objections and issues arising out of the audit and utilization certificates.

(iv) The State/UT Government, by specific order, shall empower the District Authorities and other

District functionaries technical and administrative powers for implementation of MPLADS.

(v) The State/UT Government may make arrangements for training of district officers concerned with

the implementation of the MPLAD Scheme.

(iv) The State/UT Government, by specific order, shall empower the District Authorities and other

District functionaries technical and administrative powers for implementation of MPLADS.

(v) The State/UT Government may make arrangements for training of district officers concerned with

the implementation of the MPLAD Scheme.

(vi) The State/UT Government may authorize its officers not below the rank of Deputy Secretary /

Executive Engineer to inspect MPLADS works as and when they make official field visits. It may

also check and review the number of MPLADS works inspected by the District Authorities. The

District Authority shall mandatorily maintain inspection registers –one for details of inspections of

works carried out by trusts/societies under para 3.21 and the second for showing details of works

given to other implementing agencies, including NGOs as implementing agencies

State Nodal Officials should inspect a minimum of 1% of the MPLADS works in a District every

year and an inspection register should be maintained at the State Level and follow up action should

also be taken on the findings during those inspections

(vii) The State/UT Government shall, out of the panel of auditors approved with Accountant General of

the State/UT, engage an Auditor for auditing of MPLADS accounts of each District Authority. For

purpose of continuity, the same auditor may (if the State desires) continue for three years and any

fresh appointments should be made by January of a calendar year for the succeeding three financial

years.

(viii) The State/UT Government shall hoist data on MPLADS implementation in the state on their web

sites.

(ix) The State/UT Government shall distribute the unspent balance of Rajya Sabha MPs as stipulated in

paragraph 4.8.

(x) The Nodal Department in the States should coordinate with the District Authorities for timely

submission of Utilization Certificates and Audit Certificates. Wherever, there is a delay in

submission of these documents, the Nodal Department should take up the matter with the District

Authorities and ensure timely submission of these documents to the Ministry of Statistics and

Programme Implementation.

Role of the District Authority:- The District Authority's role has been outlined in different

paragraphs of the Guidelines. Here the District Authority's role on coordination and supervision is

being indicated.

(i) The District Authority would be responsible for overall coordination and supervision of the works

under the scheme at the district level, and inspect at least 10% of the works under implementation

every year. The District Authority should involve the MPs in the inspections of projects to the extent

feasible.

(ii) The District Authority shall enforce the provisions made in the Paragraph 2.5 on the earmarked 15%

and 7.5 % of funding for MPLADS works in the SC and ST areas respectively.

(iii) The District Authority shall maintain the work-registers indicating the position of each work

recommended by the MPs and shall furnish work details along with a photograph of each work

costing Rs.5 lakh or more, to the Ministry in the prescribed format and hoist the same on MPLAD

Website.

(iv) The District Authority shall also maintain a register of all the assets created with the Scheme funds

and subsequently transferred to the User Agencies.

(v) The District Authority will inspect all works executed by/for societies and trusts under MPLADS

and ensure that the agreement conditions are being complied with. In case of violation of any of the

provisions of the agreement, action as per the agreement shall be taken by the District Authority.

(vi) The District Authority shall review every month and in any case at least once in every quarter

MPLADS works implementation with the Implementing Agencies. The District Authority shall

invite the MPs concerned to such review meetings, and send a report of such a review meetings to

Ministry of Statistics and Programme Implementation.

(vii) The District Authority shall be responsible to settle audit objections raised in the Audits Reports.

(viii) The Nodal District Authority shall submit Monthly Progress Report to the Government of India,

State/UT Government and the MP concerned for each MP separately in the format available at

th Annex-VI on or before 10 of the succeeding month. With regard to the execution of works in the SC

and ST areas, physical and financial details shall be furnished in part IV and V of format available at

Annex-VI.

(ix) As per paragraph 4.8, the Nodal District Authority shall report to the State/UT Government about the

unspent balance of the elected Rajya Sabha MP concerned. He shall also report to the Government of

India the details as per paragraphs 4.9 and 4.10.

Role of the Implementing Agencies:-

(i) It will be the responsibility of the officers of the Implementing Agencies to regularly visit the works

spots to ensure that the works are progressing satisfactorily as per the prescribed procedure and

specifications and the time schedule.

(ii) The Implementing Agencies shall furnish physical and financial progress of each work to the

District Authority every month with a copy to the concerned State Department. The Implementing

Agencies should provide the report also in the soft format. A work register should also be maintained

by the implementing agencies showing details of the physical and financial progress of projects

being undertaken by them. This register should also contain the details of spot visit made by the

implementing agencies. Implementing Agency must inspect 100% of the works.

(iii) The Implementing Agencies shall furnish completion report/certificates and utilization certificates

to the District Authority within one month of completion of the works.

(iv) The Implementing Agencies shall also refund to the District Authority the savings (balance

amounts) including interest if any, at their disposal within one month.