78% assets under MPLADS relate to connectivity, public utilities

Three out of four assets created using the MP Local Area Development (MPLAD) Scheme are related to connectivity projects like roads and bridges, public utilities like community halls, and education infrastructure.

Only 3.7 per cent of the projects under the scheme were found to be non-functional while only 6.4 per cent of beneficiaries found projects executed in their areas as not useful for them.

Around 87 per cent MPs had utilised more than 75 per cent of funds released while another 5 per cent had utilised less than 50 per cent. Overall, 91 per cent of funds released by the Centre has been utilised.

These findings are part of an evaluation by Deloitte of MPLAD projects between 2014 and 2019 and submitted to the Ministry of Statistics and Programme Implementation (MoSPI), which recommended the continuation of the scheme. Deloitte analysed 11,661 assets or works in 216 districts in 36 states for the report prepared last August.

An increase in the existing annual entitlement of Rs 5 crore per MP every year has also been recommended, citing the increase in sanctioning of more projects under MPLADS at a higher average cost after the rise in 2011-12.

It also wanted the government to consider increasing the minimum threshold for MPLAD projects from Rs 1 lakh to Rs 2.5 lakh to “potentially increase” the durability of assets created.

Amid delays in executing projects, the ‘Evaluation Report: Third Party Physical Evaluation of Works Under MPLADS for the Period 2014-19’ accessed by DH also suggested introducing a clause to charge interest or penal action for any delay by the implementing agency in completion of work within a time frame.

The consultancy was “offered/paid” Rs 3.27 crore for the work, according to MoSPI in response to an RTI filed by DH.

The MPLADS with the core objective to enable MPs to recommend developmental works with an emphasis on the creation of durable community assets was launched in 1993-94 with Rs five lakh to each MP a year and increased to Rs one crore in a year. At present, an MP gets Rs five crore per year.

According to the report, the “most preferred” sector on MPLADS are projects (37 per cent) related to connectivity – roads, bridges, pathways among others – because of its impact on rural and urban localities.

Connectivity-related works covered 66,721 works in 216 states at a cost of Rs 3,253 crore in 2014-19. Of the 66,721 works, roads accounted for 88.3 per cent, followed by construction footpaths (2.5 per cent) and culverts and bridges (2.3 per cent). The evaluation of 4,347 connectivity-related projects showed that 6 per cent of them were of poor quality.

Public utilities came second as around 30 per cent assets from MPLAD projects came under this category. Community buildings accounted for 42,919 projects in which Rs 2,400 crore were spent.

In the education sector, which accounted for 11 per cent of assets created under MPLAD projects, there were 16.165 works sanctioned for Rs 967 crore. Evaluation of 1,317 projects showed that 96 per cent of them were functional while 3 per cent of assets were stated to be in poor quality.

Projects related to the electricity sector – mainly for the lighting of public places – accounted for 9.4 per cent of the MPLAD works. The average cost of works sanctioned was 3.23 lakh. The report said that 6 per cent of the projects were of low quality.

In all cases, non-maintenance was cited as the main reason for quality issues.

MPLADS in Numbers – Since 1993-94*

Works Recommended: 24,26,295

Works Sanctioned: 2155,509

Works Completed: 19,41,631

Amount Released: Rs 54,102.25 crore

Expenditure Incurred: Rs 52,561.10 crore

Rise in Annual Entitlement

1993-94: Rs 5 lakh

1994-95: Rs 1 crore

1998-99: Rs 2 crore

2012-12: Rs 5 crore

*As on 30 Nov, 2020

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