MPs Local Area Development Scheme: ₹1500 Crore Remain Undisbursed

In an effort to streamline the fund flow architecture of the Members of Parliament Local Area Development Scheme (MPLADS), the government has launched the Sakshi portal. The portal will enable the digitisation of the entire process, from allocating funds to implementing and monitoring projects.

The Ministry of Statistics and Programme Implementation (MoSPI) reported in parliament, earlier this month that over one-third of the allotted 3,965 crore under MPLADS for FY23 remain unutilized.

MoS Answers in Parliament

Rao Inderjit Singh, Minister of State (Independent Charge), MoSPI, informed the Lok Sabha in a written response to a query that only 2,387 crore (60%) had been issued as of March 30. This was less than the previous fiscal year when 1,729 crore (65 percent) of the planned 2,633 crore was distributed. 

Gujarat (35.7%), Kerala (37.2%), Tamil Nadu (38.9%), Haryana (41.3%), and Himachal Pradesh (48.6%) have distributed less than half of the sum sanctioned to their parliamentarians. members from Andaman & Nicobar, Chandigarh, Dadra & Nagar Haveli, and Lakshadweep did not get funds under the programme previous year, with the exception of Union Territory members from Puducherry, Ladakh, Delhi, Daman, and Jammu & Kashmir.

The minister also stated that the district authorities' processing of proposals for the release of funds under the scheme is a continuous process subject to the fulfilment of fund-related criteria and the submission of fund-related documents per the guidelines.

 Members of Parliament Local Area Development Scheme (MPLADS)

The MPLADS was launched in 1993 to enable Members of Parliament to recommend development projects in their constituencies. Under the scheme, each MP has the power to recommend projects worth ₹5 crore per annum for development works such as the construction of community halls, schools, and hospitals, among others.

However, the implementation of the scheme has been marred by allegations of corruption and mismanagement. In an effort to address these concerns, the government has introduced the Sakshi portal.

Sakshi Portal

The Sakshi portal is supposed to digitise the entire process, from allocating funds to implementing and monitoring projects. The portal enables MPs to recommend projects online, and also facilitates the online submission of proposals by implementing agencies. Furthermore, the portal will enable real-time monitoring of project progress, ensuring timely completion and effective utilisation of funds.

The launch of the Sakshi portal has been welcomed by MPs across party lines, who have expressed hope that it will lead to more transparency and accountability in the implementation of the scheme.

Despite the challenges, the MPLADS has played an important role in enabling MPs to undertake development works in their constituencies. The scheme has also created employment opportunities, with many of the projects being implemented by local contractors and labourers.

The launch of the Sakshi portal is expected to further enhance the scheme's impact by enabling more efficient allocation and utilisation of funds and ensuring the timely completion of projects.