MPLADS: Chandigarh admn gets ₹2.5 crore windfall

The Chandigarh administration has got another shot in the arm after the Union government released ₹2.5 crore funds under the Members of Parliament Local Area Development Scheme (MPLADS).

It is the residual amount for the 2019-2020 fiscal and can be used for works other than those related to Covid-19 relief.

Each MP is allocated ₹5 crore discretionary funds annually. Before the pandemic hit Chandigarh in March 2020, the Centre had released ₹2.5 crore for 2019-20.

MP Kirron Kher had allocated these funds mainly to health institutes, including the PGIMER, for buying medical equipment, such as ventilators.

In view of the Covid-19 crisis and nationwide lockdown, the Government of India in April 2020 decided to suspend MPLADS for two years (2020-2021 and 2021-2022).

The release of the pending funds has come at crucial time for the ruling Bharatiya Janata Party (BJP), which is eyeing to retain power in the upcoming municipal elections.

The Chandigarh administration had recently revised the grant-in-aid (GIA) estimates for the municipal corporation for the current fiscal by 40%.

Closely following the decision, the administration got another windfall as the Centre lifted the 20% mandatory cut on spending that was imposed last year as part of austerity measures due to the pandemic. It will add at least ₹520 crore in the UT’s kitty this fiscal, and boost development works being executed by both the administration and MC.

“We are putting the funds to use according to the demand and requirements. For instance, recently Arun Sood (BJP state president) requested funds for development in some areas, which has been approved,” said MP Kirron Kher.

Sood said as the funds cannot be used for new projects, they are being spent on expanding works in the existing projects. “For instance, we are laying road tiles and upgrading sewerage system in some areas,” he said.

The MPLADS funds are also being used for setting up gyms in parks and for installation of lights, said an official.

The official, who did not wish to be named, said that there is a greater urgency in the ruling dispensation to spend the funds before the model code of conduct is enforced.

“We have already allocated ₹1 crore to the MC for extension of development works sanctioned in 2019. The remaining ₹1.5 crore will be allocated once the projects are approved,” said the official.