Members of Parliament Local Area Development Scheme (MPLADS)

  • IASbaba
  • November 11, 2021
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Members of Parliament Local Area Development Scheme (MPLADS)

Part of: Prelims and GS II – Policies and interventions

Context The Union Cabinet has restored the Members of Parliament Local Area Development Scheme (MPLADS) that was suspended in April 2020 during the remaining part of Financial Year 2021-22 and to continue MPLADS up to 2025-26, co-terminus with the period of 15th Finance Commission.

  • Currently, It is a partial rollback. The MPs will get Rs. 2 crore instead of the annual approved Rs. 5 crore.
  • Criticism of suspension: Opposition leaders had pointed out that the Government so far has not given a record of how it spent the savings from suspending the scheme for a year.


  • Will restart the community developmental projects / works in the field which are halted / stopped due to lack of funds under MPLADS.
  • Will restart fulfilling the aspirations and developmental requirements of the local community and creation of durable assets, which is the primary objective of the MPLADS.
  • Help in reviving the local economy.

What is MPLADS (Members of Parliament Local Area Development Scheme) Scheme or Sansad Nidhi Yojana?

  • It is a central sector scheme for MPs to recommend works of developmental nature in their constituencies
  • It was launched in December, 1993
  • The emphasis is on creating durable community assets based on locally felt needs.
  • Parent Body/Ministry: Ministry of Statistics and Programme Implementation (MOSPI) 
  • The funds – Rs. 5 crore/annum/MP – under the scheme are non-lapsable.
  • Funds are released in the form of grants in-aid directly to the district authorities.
  • MPs have only recommendatory role and the district authority is empowered to examine the eligibility of works, select the implementing agencies and monitor it.

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