New MPLADS Guidelines

The Ministry of Statistics and Programme Implementation has launched new MPLADS guidelines and web solutions effective from April 1, 2023. The significant changes include the establishment of CNA, a new fund flow system, direct payment to vendors, and more generic work recommendations. The guidelines also include new chapters on application and backgrounds, along with updated implementation and monitoring procedures.

• guidelines
• web solution
• significant changes
• fund flow
• direct payment
• implementation
• monitoring

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1. New MPLADS Guidelines Ministry of Statistics and Programme Implementation 1

2. 2

3. MPLADS New Guidelines + Web Solution Launched by Hon ble Minister MOSPI on 22/02/2023 shall be effective from 1stApril, 2023 3

4. Significant changes Significant changes Establishment of CNA New fund flow No parking of funds Payment made directly to vendors Web based interface with MPs Work recommendations have been made more generic Various riders and restrictions on recommendations of permissible works removed 4

5. Significant changes in the MPLADS Guidelines 2023 Definitions: New chapter containing definitions of CNA, SNA, NDA, IDA, SCB, IA, UA added. Chapter-1: APPLICATION: Newly added chapter. Chapter-2: BACKGROUNDS Revised Guidelines 5

6. Chapter-3: Implementation New Guidelines Old Guidelines It was not allowed. Contribution of Rs. 25 lakhs outside Constituency /State allowed for Trusts/Societies and Cooperative Societies. [para-3.1.2] 1. Time limit for sanction was 75 days. Sanction/rejection of recommendation of an MP shall be issued by IDA within 45 days from the date of the receipt of recommendation.[para-3.2.4] 2. Minimum threshold for each project has been raised to Rs. 2.5 lakh.[para-3.2.9] Minimum threshold limit for each project was Rs. 1 lakh.[para-3.26] 3. It shall be mandatory to select the Central Govt. Ministries/Organisations Archeological Survey of India etc.) as Implementing Agency for works pertaining to their domain [para- 3.2.10] 4. (like Railways, The work, once sanctioned by the Implementing District Authority, cannot cancelled.[para-3.2.15] The work, once sanctioned by the District Authority could be cancelled only if the execution of the work had not commenced and cancellation did not lead to any financial liability on the government.[para-3.4] be changed and 6

7. Chapter-4: Monitoring New Guidelines Provision made for taking action against erring officers for material breach of MPLADS Guidelines [para- 4.3.4] Old Guidelines There was no such provision. 1. There was no such provision. Administrative Account of State Nodal Authority and Calamity audited from amongst panel of auditors approved by the Accountant General of the State/UT. [para-4.4.4] 2. A/c to be The audit certificate in r/o funds released during the preceding year shall be submitted to the Central Nodal Agency by September 30 of each year, along with comments, if any, of the State Nodal Authority. [para-4.4.5] Audit certificate for the year preceding the previous year was required to be submitted by the District Authority for the release of the second installment of a financial year. (Para-4.3) 3. 7

8. Chapter-5: Permissible Works under MPLADS New Guidelines Old Guidelines 1. All works leading to creation of durable public assets for larger public good having no restriction in their access and usage to any section of the society, permitted under the Scheme.[Para-5.1.1] 2. Construction of more than one community hall in a village allowed. [Para-5.1.4.1 read with Point-1.1 of Annexure-VIII] Only one community hall in one village was allowed.(annexure-IV-E) 3. Construction of Govt. Office Buildings(Post Office, Police Station, Police Chauki etc.) allowed [Para-5.1.4.1 read with Point-1.9 of Annexure-VIII] It was not allowed. 4. Repair and renovation of immovable assets allowed subject to some conditions. [Para- 5.1.9] It was not allowed. 5. Pooling of MPLADS fund with CSR fund is not allowed.[Para-5.2.10] There was no clarity on the matter in old guidelines 8

9. Chapter 5: Permissible works under MPLADS para 5.1.2: MPLADS funds can be used for creation of immovable public assets on Government owned land, and movable public assets for Government owned and Government controlled institutions only, i.e. the Central, State/UT and local Governments, excluding any Government aided institutions. Permissible works under MPLADS made more generic in nature. Public and community buildings Public conveniences, safety and security Education Public health Drinking water and sanitation Irrigation, drainage and flood control systems Animal husbandry, dairy and fisheries Agriculture and farmer welfare Energy supply and distribution systems Railways, roads, bridges and pathways Environment, wild animals, forest and other natural resources Public recreational facilities, sports and parks Revised Guidelines 9

10. Works not Permissible under MPLADS 5.2.1: Operation and maintenance of any nature. 5.2.2: Construction of residential buildings, either for a Government Organization or a Public Sector Undertaking, or otherwise. 5.2.3: All work involving commercial and private establishments. 5.2.4: Naming of assets created under MPLADS fund after any person, living or dead. 5.2.5: Any grants and loans. 5.2.6: Contribution to any Centre and State/ UT Relief Funds. 5.2.7: Acquisition of land or any compensation for land acquired. 5.2.8: Reimbursement of any type for completed or partly completed works, or for purchase of movable items or completion of incomplete/ ongoing projects/ abandoned works. 5.2.9: Assets for individual/ family benefits, except for as mentioned in para 5.1.6 of these Guidelines. 5.2.10: Pooling of MPLADS funds with funds under Corporate Social Responsibility (CSR). 5.2.11: Works of religious nature, or within the places/ premises of religious worship, and on land belonging to or owned by religious faith/ group. 5.2.12: Construction of Swagat Dwars or Welcome Gates. 5.2.13: Works in unauthorized colony. 5.2.14: Recurring expenditure of any kind. 10

11. Chapter-6: Assistance to Registered Societies and Trusts, Cooperative Societies and Bar Associations New Guidelines The Implementing District Authority to ensure that details of grants given to the beneficiary Trust/ Society under MPLADS are updated on the Darpan portal on a real time basis.[Para-6.2.4] For Society/trust, construction of structures also allowed on land taken on long term lease from a Govt. or Govt. controlled institution.[Para-6.2.6.1] A Member of Parliament can recommend funds upto Rs. 50 lakhs per year to all Societies/ Trusts put together, provided Parliament cannot give more than Rs 1 crore for any particular Society/Trust during his/ her entire term. Old Guidelines There was no such provision.[Para-3.21] 1. It was not allowed[Para-3.21.1] 2. A Member of Parliament could recommend funds only upto Rs. 50 lakh per Trust/ Society during its lifetime and Rs.1 crore in a financial year all together [Para 3.21.2] 3. that such members of The limit of Rs.1 crore will start again on start of a fresh term of the election/nomination [Para 6.2.6.2] Trust society can also work as an Implementing Agency. MP after his/her re- It was not allowed. 4. 11

12. Chapter 7: Pooling of MPLADS funds with other Schemes Pooling allowed with central and sector schemes Pooling of MPLADS fund with CSR fund is not allowed. Revised Guidelines 12

13. Chapter-8:MPLADS Work for Calamities affected areas New Guidelines Old Guidelines 1. A new chapter exclusively for works relating to calamity affected areas has been added. 2. All completed authority within 18 months of the approval of the work.(Para-8.12.1) rehabilitation works concerned shall be Time limit for completion of rehabilitation work was 8 months. (Para-2.7.1) by district 3. Following the completion of works, all unspent balance amount in drawing limits shall be transferred to the State Disaster Relief Fund of calamity effected State.(Para-8.12.6) There was no such provision in old guidelines. 13

14. Chapter-9: ADMINISTRATIVE EXPENDITURE Central Nodal Agency 0.1% of total authorization released to the Nodal Districts Authorities put together State Nodal Authority 0.1% of total authorization received in that State State Nodal Authority 0.2% authorization received in that State of total Nodal District Authority 0.8% authorization received by Nodal District Authority of total Nodal District Authority 0.8% authorization received by Nodal District Authority of total Implementing District Authority 1.0% authorization from Authority as drawing limit of each Implementing District Authority 1.0% authorization from Authority as drawing limit of each received District received District Nodal Nodal New Guidelines Old Guidelines 14

15. Chapter-9: ADMINISTRATIVE EXPENDITURE New Guidelines Old Guidelines 1. Hiring of architect and consultants for preparation of Detailed Project Report in specific cases allowed(Para-9.3.3.3) It was not allowed. 2. Hiring of vehicles for inspection for Nodal District/ Implementing District fixed at Rs. 300000/ per annum (Para 9.3.3.9) Petrol District/Implementing District was not allowed. /diesel for inspection for Nodal 3. Subsequent capital expenditure above 5 lakh on the facilitation center can be made after a gap of five years (Para 9.5.6) Any subsequent capital expenditure above 5 lakh on the facilitation center was not allowed (Para 3.34) 4. Technical manpower, if required, can be engaged for each facilitation center on strictly casual basis (Para 9.5.7) Only One Data Entry Operator was allowed for each facilitation centre (Para 3.34.1) 15

16. Chapter-10: FUND FLOW MANAGEMENT New Guidelines Old Guidelines Only audit certificate for CNA shall be required for release of funds to CNA A/c. Audit authorities was required for release of fresh funds[Para-4.3(iii)] Certificate for district Audit certificate from district authority has not been linked to the release of subsequent installment concerned district 10.2.2) to the authorities (Para 16

17. Chapter-11: ACCOUNTING PROCEDURE Old Guidelines It was not there in the old Guidelines. New Guidelines Provision has been made for Audit of Administrative Expenses (Para 11.4.2) New Guidelines: Significant Paras of Chapter 11 Para 11.2: On completion of a work, the Implementing Agency/ Authority shall quickly finalize the accounts for that work and shall furnish a Utilization Certificate. generated on line and on real time basis Para 11.4.4: The Audit report of the funds released in any year shall be furnished by the District Authority to Central Nodal Agency before 30th September of the following year. Revised Guidelines 17

18. New Guidelines: Significant changes in Annexures ANNEXURE VI : Format for Utilization Certificate ANNEXURE VII : Format for Audit Certificate ANNEXURE VIII : Indicative List of works permissible under MPLADS Now, all the Progress Report is online, no need to send physical copy of progress report by district authority. Release of funds System for release of installment has become simplified, as per new system, no documents like Utilization Certificate; Monthly Progress Report, etc. will be required for release of subsequent installment. Revised Guidelines 18

19. A New Fund Flow System A New Fund Flow System Reference : DoE OM dated 9th March 2022 MPLADS falls under Model 2 of the OM, to be implemented through a Scheduled Commercial Bank(SCB). State Bank of India(SBI) is the partner SCB, which shall develop systems and hierarchies for seamless flow of MPLADS fund. The Scheme to be implemented through a Project Management Unit(PMU), a separate entity from Govt.PAOs/DDOs, which will work as Central Nodal Agency (CNA). 19

20. CNA CNA -- -- PMU PMU- - MPLADS MPLADS PMU-MPLADS will work under the control of MoSPI overall (JS level) Director/ DS level (US level) (US level) (Assistant level) (Assistant level) (Assistant level) (Assistant level) 20

21. New Fund Flow New Fund Flow CNA shall open a savings account in the Scheduled Commercial Bank (SCB) called as the Central Nodal Account to receive funds under MPLADS centrally with due approval from IFD no transfer of fund to any other account maintained at District level Open Subsidiary notional accounts MP-wise in SCB: SNA,NDA, IDA, IA All the existing bank accounts in districts/ agencies to be closed all unspent balance will be reverted to Central Nodal Agency As per PFMS - currently 6365 account with bank balance of 4289.31 Cr. CNA to give drawing rights equivalent to the unspent balance reverted One time exercise 21

22. New Fund Flow New Fund Flow Central Nodal Account Balance not to exceed Rs. 250 Cr. at any time (except initially) PMU-MPLADS tops-up by Rs. 200 Cr. whenever balance falls below Rs. 50 Cr. (MoF has allowed this model till September, 2023) Balance with CNA at end of FY Not surrendered back to the CFI Utilized in subsequent years Interest accrued To be distributed equally among all sitting MPs having tenure of more than 9 months 22

23. New Fund Flow New Fund Flow CNA will fix the drawing limits for Honorable MPs At the beginning of the FY as per the entitlement of each MP Honourable MPs will allot the work recommendation and limits accordingly to the IDAs IDA will fix drawing limits of IAs basis the work recommendation amount Flow of funds from Central Nodal Account directly to the vendors on real time basis All subsidiary accounts (SA) To be only pass through accounts 23

24. Fund Flow Hierarchy Fund Flow Hierarchy CNA Admin. Expenses Natural calamity SNA NDA 1 NDA 2 NDA 3 Fund Flow Directly to vendors from CNA IDA1 IDA2 IA1 IA2 Vendor 24

25. THANKS 25