4.        The above clarifications will be subject to the compliance of all other relevant provisions of the MPLADS Guidelines.

Yours faithfully,

(V.K. ARORA)

Director (MPLADS)

Sir/Madam,

          Vide this Department's letter No. C/2/94-MPLADS (Vol.IV) dated 21^st August, 1995, it was conveyed to all the District Collectors/ District Magistrates/ Deputy Commissioners that the amount of interest that accrues on the funds, under MPLADS, should not be utilised for incurring any expenditure till a final view in the matter is taken.

2.        This Department vide letter of even number dated February 18, 1999 had conveyed the decision of the Government of India about the increase in allocation,under MPLADS, from Rs.1 crore to Rs.2 crores per MP per year, utilisation of interest accrued on the funds deposited with the nationalised banks for the same purpose for which the basic amount has been allocated and the distribution of the unspent balance left by the predecessor MP of Rajya Sabha in a particular State amongst the successor Rajya Sabha MPs in that particular State.

3.        Clarifications by the Districts are being sought from this Department about the manner of utilisation of interest accrued on

MPLADS funds. In this regard, the following procedure may be observed:

1. The interest accrued on funds released in respect of Lok Sabha Constituencies may be utilised on the recommendations of the sitting MP from the Constituency under the scheme as per the guidelines.

2. Interest accrued on the funds released in respect of a particular elected/Nominated Rajya Sabha/ Nominated Lok Sabha sitting MP may be utilised on the recommendations of that particular sitting MP under the scheme as per the guidelines.

3. The unspent balance of interest left by the predecessor elected MPs of Rajya in a particular State will be equally distributed amongst the successor Rajya Sabha MPs in that particular State.

4. The unspent balance of interest left by the predecessor Nominated Members of Rajya Sabha will be equally distributed among the successor Nominated Rajya Sabha Members.

5. The unspent balance of interest left by the predecessor Nominated Members of Lok Sabha will be equally distributed between the successor Nominated Lok Sabha Members.

4.        The above clarification will be subject to the compliance of all other relevant provisions of the MPLADS Guidelines in general and para 3.9. in particular.

Yours faithfully,

(V.K. ARORA)

Director (MPLADS)

Sir/Madam,

          This is in continuation of this Department's letter of even number dated 6^th July, 1999 on the above subject.

2.        Many of the Collectors could not sanction the works recommended by the MPs of 12^th Lok Sabha after issue of the above referred clarification as the Election Commission of India announced the operation of Model Code of Conduct for elections on 11^th July, 99.

3.        Now that the election process is over, clarifications are being sought by the Districts as to what action is to be taken on the pending recommendations received from the MPs of 12^th Lok Sabha.

4.        The matter has been considered and it has been decided that all works recommended by the MPs of 12^th Lok Sabha and received by the District Collectors upto 26^th April, 99 may be sanctioned within 30 (thirty) days from the date of issue of the present clarification provided these fulfil other conditions of the guidelines.

Yours faithfully,

(V.K. ARORA)

Director (MPLADS)

Sir/Madam,

          As you may already be aware that the Election Commission of India, in the media reports, of 4^th October, 1999, had announced that as the voting was over, Government of India might proceed with its normal business without reference to the Commission. This Ministry, accordingly, restarted the process of release of funds, under the scheme, after this announcement. The District Heads also resumed the work of processing and executing the works under the scheme.

2.        Some Members of Parliament have approached this Ministry and have informed that the concerned Collectors have not yet started the execution of work, under the scheme, saying that there are no such instructions from the Ministry of Statistics & Programme Implementation. In this regard, it is clarified that after the announcement of Election Commission of India, in the media, that the normal business of the Government may start, no separate instructions are required from this Ministry for implementation of works under the scheme.

3.        In this Ministry's letter of even number dated April 15, 1999, it was requested to all the District Heads to process and sanction all the works recommended by the MPs to the extent of their entitlement of MPLADS funds. It has, however, come to the notice of this Ministry that some of the District Heads are not processing the recommendations of the concerned MPs unless the funds are received by them. Such practice slows down the process of implementation of the scheme and ultimately, the development of your district, through the scheme, suffers.

4.        I am, therefore, writing to request you, once again, to process and sanction all the works recommended by the concerned MPs up to the extent of their entitlement of funds without waiting for receipt of the funds from this Ministry. You are also requested to send us report in the prescribed format every month so that this Ministry may release the funds to the fullest extent.

Yours faithfully,

(V.K. ARORA)

Director (MPLADS)

Sir/Madam,

          This is in continuation of this Ministry's letter of even number dated 1^st November, 1999.

2.        It was clarified vide the letter referred to above that all works recommended by the MPs of 12^th Lok Sabha and received by the District Collectors up to 26^th April, 1999 may be sanctioned within 30 days from the date of the issue of the clarification provided these fulfil other conditions of the guidelines.

3.        It has come to the notice of the Ministry that while taking action as per the above clarification of this Ministry, some Collectors have sanctioned works recommended by the MPs of 12^th Lok Sabha against the MPLADS funds for the year 1999-2000. As the Members of 12^th Lok Sabha were MPs only for 26 days in 1999-2000, their entitlement is for full funds of 1998-99 and the previous balance, if any, left in the constituency as per the guidelines. They are not entitled to any funds, under the scheme, for the year 1999-2000 which can be spent only on the recommendations of the MPs of the 13^th Lok Sabha.

4.        All concerned are, therefore, advised that any sanction issued for works recommended by the MPs of 12^th Lok Sabha committing funds for the year 1999-2000, should be cancelled immediately and no funds pertaining to year 1999-2000 should be spent on the works recommended by the MPs of 12^th Lok Sabha. There would not be need for any cancellation if the MP of 12^th Lok Sabha has been re-elected to the 13^th Lok Sabha from the same consitituency.

Yours faithfully,

(V.K. ARORA)

Director (MPLADS)

          You are aware that the Member of Parliament Local Area Development Scheme (MPLADS) has been in operation since December,1993. Under the scheme, each Member of Parliament has a choice to suggest to the Head of the Districts developmental works, which lead to the creation to durable assests, based on locally-felt needs, in his/her Constituency/State. In the initial years, allocation per MP under the scheme was Rs.1 crore per year. Realising the usefulness of the scheme, the Hon'ble Prime Minister, Shri Atal Bihari Vajpayee, announced on 23rd December,1998 that this amount was being raised from Rs.1 crore to Rs.2 crores from the financial year 1998-99.

2.        The scheme is governed as per the guidelines of the scheme, a copy of which has already been forwarded to you. In the past, the Comptroller & Auditor General of India, in their Audit Report for the year ending March,1997, had brought out instances of non-observance/violation of the guidelines. I am, therefore writing to you to request you to please ensure proper observance of the guidelines while recommending works under the scheme. In particular, I seek your cooperation on the following points:

1. The recommendations for works should be given to the concerned collector, well in advance, in phased manner, without waiting for the actual release of the funds indicating priorities to the work to be taken up first. This would enable the concerned collector to ensure necessary action for sanctioning the work. Giving recommendations at fag-end of the financial years causes administrative problems affecting smooth implementation of works resulting in slow utilization of funds.

2. It should be ensured that only such works as are covered under the guidelines are recommended. The guidelines include an illustrative list of works that can be taken up under MPLADS (Appendix-I) and also a list of works that are not permissible under the scheme (Appendix-2). In case of any doubt whether a particular work is covered under the guidelines or not, the MP may seek a clarification from the concerned Collector or from the Department of Statistics & Programme Implementation.

3. The recommendations for works should be given by the MPs on their letterhead under their own signatures. Verbal recommendations or recommendations through representatives should not be resorted to as the Collectors have already been advised to accept recommendations only from the MPs in the manner mentioned above.

4. Rough cost estimates should be indicated by the MPs while recommending works. The Collectors will get the exact estimates prepared from the concerned implementing agencies and issue sanction for the full cost of the work.

5. For construction works, the MPs should recommend such specific locations as are free from any encumbrance and have clear title so that these could be easily taken over/allotted by the Collector for execution of works.

6. Works should not be cancelled by the MPs if the same had already been sanctioned. In this connection, the Collectors have already been advised to issue instructions to field agencies not to stop any work in-between or abandon any work halfway even if such request is received from the MP. This would avoid expenditure already incurred going waste.

3.        I am sure that you would extend your full cooperation in the matter in ensuring that the guidelines for the scheme are strictly followed.

With regards,

Yours Sincerely,

(Bangaru Laxman)

To

All Members of Parliament

(Lok Sabha & Rajya Sabha)

          The Election Commission of India, in their media reports dated October 4,1999 had announced that since the voting was over, the Government of India might proceed with its normal business without reference to that Commission. Accordingly, my Ministry restarted the process of release of funds under the MPLADS based on the reports received from the District Collectors. You may be already aware about the criteria for release of funds in instalments of Rs.50 lakhs each. Once the report is received from the concerned Collector showing an unsanctioned balance of less than Rs.50 lakhs, the next instalment is released.

2.        The non-release of funds, if any, may be either on account of lack of sufficient recommendations from you to the concerned authorities for utilization of funds already released or the inability of the Collector in processing the projects speedily and sending the required report to us. We are separately writing to the Collectors in this regard.

3.        I thought of writing to you to request you that you may give recommendations for sufficient works to the concerned Collectors for full utilization of MPLADS funds as per your entitlement so that the maximum public welfare from the scheme is achieved.

4.        It is also for your information that an amount of Rs.50 lakhs has already been released in all eligible cases for the year 1999-2000 and you may get in touch with the concerned District Collectors.

With regards,

Yours Sincerely,

(Bangaru Laxman)

To

All Members of Parliament

(Lok Sabha & Rajya Sabha)

          As you are aware, the Member of Parliament Local Area Development Scheme (MPLADS) has been in operation since 23rd December, 1993. The scheme was started with laudable objectives and a large amount of funds is earmarked, every year, for the scheme, to achieve its objectives. The allocation has been increased to Rs.1580 crores per year from the year 1998-99 with raising of allocation from Rs.1 crore to Rs.2 crores per MP per year.

2.        The scheme funds are to be spent on the works recommended by the MPs based on locally-felt needs. The durable assets created under the scheme ultimately become the property of the State Government and will benefit the people of the respective States. If States do not make due efforts in utilising the entitled funds, ultimately it is the State who will suffer.

3.         I have had a review of the position of utilisation of funds released to the respective States upto 30.9.99 and found that in more than half the States/UTs, the utilisation of funds released under the scheme in 13 States/UTs, is less than 60%. This low level of utilisation of funds released to the State Governments is a cause for concern for every one. This position is, leaving aside the funds for which the State Governments are entitled but have not been released to the respective States, as the release of funds is according to the previous progress. I am, therefore, to request you that all efforts should be made to bring the utilisation level to 80-85% so that funds do not lie idle in the Districts. I am enclosing herewith a copy of the statement indicating the total amount released, Lok Sabha constituency-wise and Rajya Sabha MP-wise, and corresponding utilisation in your State for your ready reference.

4.        I have also decided to have review meetings in the State Capitals with the concerned State/District officials and the MPs to reivew the performance of implementation of MPLADS in those States where the utilization is below 60%. I purpose to hold there review meetings sometime in January-February,2000. Specific dates/time etc. of these meetings will be intimated to you in due course. In respect of your State utilization is 59 percent.

5.        Similar review meetings were earlier taken by my predecessor at Patna, Calcutta and Bhubaneshwar in the months of September,98, January,99 and February,99 respectively. The following are some of the issues raised by the concerned Members of Parliament :-

1. There is a lack of communication between the District Head as the MPs. The letters of MPs are not replied to.

2. Information about the balance of funds is not being made available to the MPs with the result that they remain in dark about how much works to recommend.

3. There were delays in implentation of works under the scheme.

4. The date of start and the date of completion of the work should invariably be informed to the concerned MP.

5. Monitoring of the works under the scheme, as envisaged in the guildelines was not being done.

6. For better communication, copies of plans & estimates, work orders, etc. should be made available to the concerned MPs.

6.        I thought of bringing to your notice the above issues raised by the MPs for taking appropriate action at your end.

7.        The guidelines on MPLADS contain adequate provisions for monitoring of the scheme. It has, however, been observed that proper monitoring is not being done at the field level resulting in delays in implementation and affecting the quality of works undertaken. Following are some of the provisions in the guidelines:

1. Head of District shall visit and inspect at least 10% of the works every year.

2. It should be the responsibility of the senior officers of implementing agencies to regularly visit the work spots and ensure that the works are progressing satisfactorily as per prescribed procedures and specifications.

3. Officers of District at the sub-divisional and block level shall also closely monitor implementation of these works through visit to work sites.

4. Head of District should also involve the MPs in inspections and monitoring to the maximum extent feasible.

5. Monitoring reports should be furnished once in two months to the Members of Parliament.

8.        The guidelines also envisage that the Chief Secretary or in his absence a Senior Principal Secretary/Additional Chief Secretary to conduct a meeting involving Head of Districts and MPs to assess the progress of works under the scheme at least once in a year.

9.        You may kindly issue necessary instructions to all concerned to strictly follow the monitoring arrangement as laid down in the guidelines.

10.        As mentioned above, the Ministry of Statistics & Programme Implementation has not been able to release full funds for which the States are entitled as the releases are regulated as per their previous progress. Each constituency is entitled for a total of Rs.805 lakh for the years 1993-94 to 1999-2000 @ Rs.5 lakh per constituency for 1993-94 Rs.1 crore per year for the years 1994-95 to 1997-98 and Rs.2 crores per year for 1998-99 and 1999-2000. As you would find from the enclosed statement, some of the constituencies in year State have not yet availed of the full funds under the scheme as per their entitlement.

11.        I would request you for taking necessary steps so that the works under the scheme are sanctioned expeditiously and the reports are sent to my Ministry to enable the Ministry to release all the funds due to the constituency.

12.        In this connection, I would also request that special review, with regard to works recommended and sanctioned but not under taken for execution for one year or more could be held so that such works could implemented without further delay.

13.        I hope that you will have your personal intervention in the matters for accelerated progress in implementation of the scheme and to make best use of the funds. Kindly keep me informed of the actions taken.

With regards,

Yours Sincerely,

(Bangaru Laxman)

Encls. As above

To

All the Chief Ministers/Administrators,

Sir/Madam,

          It has been brought to the notice of this Department by various MPs that implementation of works under the MPLAD scheme is inordinately delayed by the implementing agencies, resulting in various problems such as escalation in project cost, delayed pace of utilisation of funds and development. The matter has been considered and it has been felt that it may not be possible to stipulate a stardard time limit in the guidelines, to complete the work, because of different nature of works involved. However, it has been decided that the District Collectors may stipulate a time limit for the implementing agencies to complete the given work in a specific time frame, depending upon the reature of work and to take strict action against the implementing agencies, if they fail to adhere to the time limit.

2.        Therefore, it is requested that such stipulation of time limits for completion of work depending upon the merit of each case may be made in the work order (s) being issued. Clause for suitable action against the implementing agency in the event of their failure to complete the work within the stipulated time frame could also be stipulated in the work order, as per established procedure.

Yours Sincerely,

(Dr.N.K.Sahu)

Deputy Advisar(MPLADS)

Copy to:-

All the Chief Secretaries and States/UTs.

(Dr.N.K.Sahu)

Deputy Advisar(MPLADS)

Sir/Madam,

          The 12^th Lok Sabha was dissolved on Monday, the 26^th April, 1999. Clarifications are being sought as to which of the works recommended by the MPs of 12^th Lok Sabha are to be sanctioned/executed.

2.        In this regards, it may be mentioned that though Para 3.9 of the Guidelines lays down principles to be followed for taking up works under the Scheme when there is a change of MP but in the present case, Lok Sabha has been dissolved but the successor MPs have not yet taken over. Due to sudden dissolution of the Lok Sabha, the MPs of the 12^th Lok Sabha could not anticipate and, therefore, could not give their recommendations 45 days in advance as stipulated in Para 3.9.

3.        After considering all the relevant factors and keeping in view that the MPs of 12^th Lok Sabha were MPs upto and including 26^th April, 1999, there is justification to honour the commitments made by them in the form of works recommended by them till 26^th April, 1999.

4.        It has, accordingly, been decided that all works recommended by the MPs of 12^th Lok Sabha and received by the District Collectors upto 26^th April, 1999 may be sanctioned upto 30 days from the date of issue of this clarification or upto the date on announcement of the elections for the 13^th Lok Sabha whichever is earlier, provided these fulfil other conditions of the Guidelines.

5.        The sanction and execution of works as mentioned above will be further subject to any other directions issued by the Election Commission of India in this regard.

Yours Sincerely,

(V.K.Arora)

Director (MPLADS)

          Please take a reference of my letter of even number dated February 18, 1999 through which I had communicated to you the decision of the Government to increase the allocation of each MP from Rs. One crore to Rs. Two crores per year from the year 1998-99 itself. Through this letter, I had also conveyed to you the decision of the Government that the interest accrued so far on the funds kept in the nationalized banks can also be used for the same purpose for which the funds were allocated to the MPs; and in the case of any unsanctioned/unspent balance of a retiring Rajya Sabha MP, the amount to be equally distributed amongst the newly elected Rajya Sabha Members.

2.        I am hereby requesting you:

1. to ensure that those of the MPs, who are eligible for the release of this additional amount of Rs. One crore in your District, you should sanction the projects and ask for the third instalment of Rs.50 lakhs to be released if the balance of the first two instalments of 1998-99 has gone below Rs.50 lakhs;

2. you should also ensure that you hold detailed bi-monthly meetings with your MPs and apprise them not only of the funds position but the position in respect of sanction of projects and the progress of implementation. These statements should also be made available to MPs on regular basis every month;

3. The position of funds remaining in balance as well as the amount of interest etc., should also be made available to the MPs on regular basis;

4. While sanctioning and implementing the project recommended by the MP, you should at all times adhere strictly to the provisions of the guidelines and should ensure that a time limit is fixed not only for the sanction of projects but also for their expeditious implementation by the concerned implementing agency.

3.        The Union Minister of State for Planning & Programme Implementation has also written to all MPs on similar lines to ensure that there is no lack of interaction or gap in communication between the District Collectors, implementing agencies and the concerned MPs (copy enclosed). It is of utmost importance that you maintain very intense and constant interaction and information sharing with the MPs to ensure the successful implementation of the MPLAD Scheme.

4.        Kindly acknowledge the receipt of this letter and take action accordingly.

        Regards,

Yours Sincerely,

(N.R.Banerji)