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Fresh guidelines for MPLAD scheme

Last updated: 16 June, 2011
New Delhi, June 16, DHNS:

About 18 years after the implementation of the Me­mber of Parliament Local Ar­ea Development (MPLAD) scheme, the Centre has revised its guidelines allowing greater flexibility to Pa­rliamentarians and fast-tr­ack implementation of projects.

Under the scheme, MPs now can recommend for any eligible projects of  up to Rs 10 lakh annually in or outside their state or Union Territory (UT), a move which is aimed at fostering unity among states.

Earlier, the projects they were able to take up outside the area from where they have been elected were only related to cultural and educational activities.

The work ambit under the scheme is being enlarged to give MPs a larger choice of projects under the scheme. The government has recently allowed spending of MPLAD fund in assisting the physically challenged which has received wide appreciation, sources pointed out.


As per the new guidelines, an MP’s contribution for a Trust or society has been raised from Rs 25 lakh to Rs 50 lakh in a financial year which will allow availability of larger amount for development activities in villages and townships.

In the case of works  undertaken by the government agencies, the entire sum  of up to
Rs ­2 ­l­akh would be released as advance in one installment.

If the state government rules allowed giving advance of 100 per cent, even the Rs 2 lakh ceiling could  be exceeded.

If the work is undertaken by private players, the district authorities can release funds up to 60 per cent of the sanctioned amount as first installment.

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