Date:15/11/2008 URL: http://www.thehindu.com/2008/11/15/stories/2008111560801200.htm

Tamil Nadu - Chennai

Norms soon for spending MLA area development funds

R.K.Radhakrishnan

At least 20% of the funds will have to be spent in SC/ST areas

CHENNAI: The government will shortly issue guidelines to ensure that at least 20 per cent of the funds under the MLA’s Local Area Development Scheme (MLA LADS) will be spent in Scheduled Caste/Scheduled Tribe areas or for their welfare.

The MLA LADS, under which each sitting MLA can suggest development work in his/her constituency up to Rs.1.5 crore each year, already has a set of broad guidelines as to what kind of works could be taken up. Till now there is no specific guideline on spending for SC/ST area/projects.

Pointing this out in the State Assembly on Friday, D.Ravikumar (VCK) said that each MLA constituency should be treated as a basic unit and demarcation of population should be taken into account. Works should be taken up in the constituency depending on the SC/ST population in that area.

Letter to Secretary

Mr.Ravikumar later handed over a letter to Rural Development Secretary Ashok Vardhan Shetty on the issue. Mr.Shetty, after discussing the issue with Local Administration Minister M.K.Stalin, assured Mr.Ravikumar that the guidelines on spending at least 20 per cent of the earmarked funds for SC/ST welfare would be issued at the earliest.

Finance department officials said that even without the guidelines, a substantial amount of the MLA LADS funds have been used for SC/ST projects.

The 2008-09 Budget Estimates puts the expenditure at Rs.225.6 crore and under the Special Component Plan, Rs.56.4 crore will be spent.