The Members of Parliament Local Area Development Scheme (MPLADS) was launched on 23rd December, 1993. Initially, Ministry of Rural Development was the Nodal Ministry for this scheme. In October, 1994 this scheme was transferred to the Ministry of Statistics and Programme Implementation.
Salient features of the scheme are:
- It is a centrally plan scheme.
- Funds released are non-lapsable
- The elected Lok Sabha Members can recommend works in their respective constituencies. The elected members of the Rajya Sabha can recommend works anywhere in the state from which they are elected. Nominated Members of the Lok Sabha and Rajya Sabha can recommend works for implementation, anywhere in the country.
- An MP can recommend funds only upto Rs. 100 lakh in all in a financial year, from MPLADS funds for works to Trusts/Societies.
In order to accord special attention to the development of areas inhabited by Scheduled Castes (SCs) and Scheduled Tribes (STs), 15 per cent of MPLADS funds are to be utilized for areas inhabited by SC population and 7.5 per cent for areas inhabited by ST population.