MP fund hiked to Rs 5 crore

NEW DELHI: The cabinet on Thursday approved granting every Member of Parliament an increased annual allocation of Rs 5 crore under the Member of Parliament Local Area Development Scheme (MPLADS) against Rs 2 crore allowed at present.

The higher allocation will increase the total annual expenditure of the government on the scheme by 150% to Rs 3,950 crore from an earlier expenditure of Rs 1,580 crore.

The cabinet also approved that 2% of the increased allocation will go to districts and states for proper implementation and monitoring of the Scheme, as suggested by the Comptroller and Auditor General (CAG) in a recent report on the scheme. The Ministry of Statistics and Programme Implementation (MOSPI) will also get an additional Rs 5 crore that will be utilised towards implementation and monitoring of the scheme through independent agencies and building capacity and human resource at the ministry.

The MPLAD Scheme was launched in 1993-94. The Scheme enables MPs to recommend works for creation of durable community assets based on locally felt needs in their constituencies. The projects funded include creation of infrastructure to provide drinking water, education, public health, sanitation, roads among others.

The Cabinet Committee on Economic Affairs ( CCEA) further approved a 100% centrally sponsored Special Industry Initiative Scheme in Jammu and Kashmir. The government will implement the scheme in partnership with the National Skill Development Corporation and the corporate sector to provide training to youth in skills needed by companies. The government will also give incentives to companies to provide placement to trained youth under the scheme. The estimated expenditure is around Rs 2.5 lakh per trainee. The government will make a provision of Rs 500 crore in the next five years from the current fiscal onwards for the scheme.