The Union cabinet on Wednesday approved the restoration of the Member of Parliament Local Area Development Scheme (MPLADS) for the remaining part of this fiscal and its continuation till 2025-26 after a third-party evaluation done by the statistics and programme implementation ministry recommended that it be continued.

The MPLADS — a centrally sponsored scheme launched in 1993 that allows MPs to recommend to the district administrations public works in their constituencies — was suspended in April 2020 for two fiscals to shore up finances for the pandemic. The decision handicapped MPs as they were left with no resources to improve health facilities in their constituencies.

During the time when the scheme was suspended, the statistics and programme implementation ministry carried out a third-party evaluation of the MPLADS projects in 216 districts across the country. The report recommended continuation of MPLADS.

Asserting that the economy is on the path to recovery, the Union cabinet decided to release Rs 2 crore per MP for the remaining part of this fiscal and revert to the allocation of Rs 5 crore per annum from the next financial in two equal instalments.

Implementation of MPLADS is done by the district administrations. Accounts of the money are maintained by them and subsequent instalments are released on submission of utilisation certificates.