MPLADS is a Plan Scheme fully funded by central government . Under the scheme, each Member of Parliament (MP) has the choice to suggest to the DC works to the tune of Rs. five crore per annum to be taken up in her/his constituency, as per eligibility. Rajya Sabha MP can recommend works in one or more districts in the State from where she/he has been elected. Nominated Members of Lok Sabha and Rajya Sabha may select any one or more districts from any one State in the Country for implementation of work(s) of their choice under the scheme.
Ministry of Statistics & Programme Implementation (MOS&PI) has issued few guidelines on Scheme Concept, implementation, and monitoring. Progress of works being implemented under the scheme is monitored by MOS&PI on regular basis.
The MPLAD scheme was formulated in the year of 1993 to enable MPs to recommend development works in their constituencies with emphasis on the creation of durable community assets based on the locally felt need.
Initially, the Scheme was under the control of the Ministry of Rural Development and Planning, Government of India . In October, 1994, the scheme was transferred to the another ministry, Ministry of Statistics & Programme Implementation. The Scheme is not based on any particular statutory enactment. Instead, it is governed by a set of guidelines which were first issued by the Ministry of Rural Development in February, 1994. After the Scheme was transferred to the Ministry of Statistics and Programme Implementation, revised guidelines were issued from time to time. The latest revision in the guidelines happened in June 2016.
In 1993-94, when the Scheme was launched, an amount of Rs.5 lakh per annum per Member of Parliament was allotted. This became rupees one crore per annum from 1994- 95 per MP Constituency. This was stepped up to rupees two crores from 1998-99 and to rupees five crores from 2011-12.
Few days ago Cabinet approves 30% salary cut for MPs as well as suspended MPLADS.