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Members of Parliament Local Area Development Scheme (MPLADS) Started in 1993. MPLADS is a Plan Scheme fully funded by Government of India. The objective of the Scheme is to enable MPs to recommend works of development nature with emphasis of the creation of durable community assets based on the locally felt needs to be taken up in their Constituencies. In 1993-94 when the Scheme was launched, an amount of Rs. 5 Lakh per Member of Parliament was allotted which became Rupees on 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.

Lok Sabha Members can recommended works within their constituencies and Elected Members of Rajya Sabha can recommend works within the State of Election. Nominated Members both the Rajya Sabha and Lok Sabha can recommend works, anywhere in the country.

MPs are to recommend every year, works costing at least 15 percent of the MPLADS entitlement for the year for areas inhabited by Scheduled Caste population and 7.5 percent for areas inhabited by Scheduled Tribe 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 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 area and vice-versa. It shall be the responsibility of the District authority to enforce the provision of the guideline.

Each MP will recommend works up to the annual entitlement during the financial year to the concerned District Authority. The District Authority will get the eligible sanctioned works excited as per the established procedure of the State Government.

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, 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.

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.

District collector/ District Magistrate/Deputy commissioner will generally be the District Authority to implement MPLADS in the district.

The District Authority shall identify the agency through which a particular work recommended by the MP should be excuted.The work and the site selected for the execution by the MP shall not be changed, except with the concurrence of the MP concerned, but change will be allowed once the work has commenced and expenditure liability incurred.

Where the District Authority considers that a recommended work cannot be excited 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 the 45 days from the date of receipt of the proposal.

The District Authority any sanctioned works as per the recommendation of the MP up to the full entitlement. However, the release of funds will be regulated as specified in these Guidelines.

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.

" All recommended eligible works should be sanctioned within 75 days from the date of receipt of the recommendation, after completing all formalities.

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 the society/trust. If a Society has already availed of MPLADS funds up to Rs. 25 lakh, no more funds can be recommended for that Society/Trust under the Scheme from the financial year 2011-2012, an MP can recommended funds only up to 50 laky in all, in a financial year from MPLADS funds for Works to Societies/Trusts.

The minimum amount sanctioned under the MPLADS Scheme for any project or work should normally be not 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.

The annual entitlement of Rs. 5 crore shall be released, in two equal installment of Rs- 2.5 crore each by Government of India directly to the District Authority of the Nodal Distict of the Member of Parliament concerned.

At the time of the constitution of Lok Sabha, and election of a Rajya Sabha Members, the first installment of Rs. 2.5 crore shall be released to the District Authority without the documents. The subsequent installment of the continuing Members of Rajya Sabha and Lok Sabha will be released as per eligibility criteria.

The first installment of Rs. 2.5 crore at the time of constitution of Lok Sabha or election or Rajya Sabha Members 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 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 :-

1. 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.
2. The unspent balance of fund of the MP Concerned is less than Rs. 2.5 Crore; and
3. Utilization certificate and Audit Certificate of the immediately concluded financial year ending 31st March have been furnished by District Authority.

Funds Released to the District Authority by the Government of India are non-lapsable. Funds left in the district can be carried forward for utilization in the subsequent years.

The District Authority and Implementing Agencies shall maintain accounts of MPLADS funds, MP-wise. Cash Book and other Books of Accounts shall be maintained as per the State/UT Government procedure.

The District Authority and Implementing Agencies will properly maintain MPLADS accounts. District Authority will furnish Utilization Certificate every year in the form prescribed in the Guidelines to the State Government and the Ministry of Statistics and Programme Implemention. These accounts and Utilization Certificate will be audited by the Chartered Accountants or the Local Fund Auditors or any Statutory Auditors as per the State/UT Government procedure. The Auditors should be engaged by State/UT Government for each District Authority on the basis of the recommendation of the Accountant General of the State/UT concerned.