In a move to allow MPs to take up more development projects in their constituencies, the government on Thursday notified the increase in their allocation under the Member of Parliament Local Area Development Scheme (MPLAD) from R2 crore per annum to R5 crore per annum. The move is expected to cost the exchequer more than R4,000 crore per annum.

In March, finance minister Pranab Mukherjee had announced a R2,370-crore package for MPs by raising their allocation under the MPLAD scheme. MPs have been demanding an increase in the MPLADS funds to enable them to take up big development activities in their constituencies. They have been demanding either to raise the allocation or else to scrap the scheme.

Besides, the government has also relaxed the norm for allocation of MPLAD funds outside the concerned MP?s constituency.

According to a statement by the ministry of statistics and programme implementation, under the new MPLAD norm, an MP is eligible to undertake any approved work to the tune of R10 lakh per annum outside his/her respective constituency. ?To give MPs a larger choice of projects under the MPLAD scheme, the basket of eligible items under the scheme is being enlarged,? a statement by MS Gill, minister of statistics and programme implementation, said.

The statement said the existing MPLAD guidelines were ?restrictive? to the extent that they allowed an MP to contribute outside his/her state or constituency only for works related to education and culture, with a maximum cap of R10 lakh per annum. ?This improvement would enable the MPs to assist in the needs of various States/UTs other than their own and this would promote national unity, harmony and brotherhood among the people,? the statement said.

The existing MPLAD guidelines stipulate that the funds would be released to the implementing agencies in two equal instalments of 50% each. To speed up the work and to ensure timely completion of the approved projects, the government has also decided that the district authority will release 75% of the estimated cost of a sanctioned work in advance as a first instalment if the agency implementing it is government-owned, and rest of the 25% as second instalment after sufficient progress has been achieved.