A massive hike raised to Rs five crore in the annual allocation for a scheme that enables every MP to recommend development works in their constituencies, was approved by the government on Thursday.

The decision to increase the annual allocation for the Members of Parliament Local Area Development Scheme (MPLADS) from Rs two crore to Rs five crore for each MP from 2011-12, was taken at the meeting of the Union Cabinet, chaired by Prime Minister Manmohan Singh, Information and Broadcasting Minister Ambika Soni told reporters in New Delhi.

The move would cost the exchequer an additional Rs 2,370 crore annually, raising the total expenditure from Rs 1,580 crore to Rs 3,950 crore per annum.

The hike has been made effective from April one this year.

Soni said the move came in view of demands made by MPs in the Parliament to raise the allocation.

“This augmentation will result in better fulfilment of the needs of the people and creation of durable community assets based on locally-felt needs,” she said.

This asset creation has been taking place in areas of national priority like drinking water, sanitation, education and public health.

Asked why the hike was felt necessary, she said the rise in prices was adversely affecting the scheme and the developmental projects.

Responding to a question, she allayed apprehensions regarding corruption and said the MPs have themselves resolved that they would closely monitor implementation of the projects they have recommended and there were several monitoring mechanisms at the state and local levels besides the RTI Act.

The Cabinet also approved annual administrative expenses of two per cent of the annual MPLAD outlay to be given to districts or states for proper implementation and monitoring of the scheme, Soni said.

She said this amount would be met within the Rs five crore outlay per MP per annum.

An additional annual allocation of Rs five crore would be made to the Statistics and Programme Implementation Ministry towards monitoring of projects through independent agencies, the Minister said.

As on 31st March, 13.87 lakh works have been recommended by MPs.

Of this, 12.30 lakh works have been sanctioned by the district authorities and 11.24 lakhs works completed since the inception of the scheme in 1993-94.

Over Rs 22,490 crore have been released since then and an expenditure of Rs 20,454 crore has been incurred.

The scheme, which enables the MPs to recommend works for creation of durable community assets based on locally felt needs to be taken up in their constituencies, is governed by a set of guidelines which were last revised in November 2005.

Govt clears FM Phase III, AIR news allowed for pvt channels

The government has also cleared guidelines of the much-delayed FM Radio Phase III expansion that will allow private radio channels to broadcast news of All India Radio and enable revenue generation of Rs 1,733 crore from the auction of license for services in 227 cities.

A meeting of the Cabinet chaired by Prime Minister Manmohan Singh also approved hiking of foreign investment limit on private FM radio broadcasting company to 26 per cent from the current 20 per cent.

“The FM Phase-III policy extends FM radio services to about 227 new cities, in addition to the present 86 cities with a total of 839 new FM radio channels,” Information and Broadcasting Minister Ambika Soni told reporters in New Delhi.

She said the FM phase III policy will result in coverage of all cities with a population of one lakh and above through private FM channels.

“Through the auction of license of the FM Phase III expansion, the government is expecting Rs 1,733 crore of income,” she said.

The Phase I and Phase II policies have resulted in a total revenue accrual of about Rs 1,733 crore up to 31st May, 2011 by way of one time entry fee, migration fee and annual fee among others.

Soni said the private FM channels will now be allowed to carry news items from AIR. Earlier they had not been allowed.

Asked why news from agencies has not been allowed to be broadcast when even AIR is also sourcing from newswires, she said “I don’t rule it out. When greater liberalisation takes place in time to come, it may be considered. It depends on what various ministries say and how the system functions.”

Cabinet to decide on Wageboard recommendations next week

A decision on the recommendations of Justice Majithia Wageboards for newspapers and news agency employees is likely next week with the Union Cabinet on Thursday deciding to take it up at its next meeting.

“The issue of the wage boards for journalists and non -journalists will be taken up at the next meeting of the Cabinet next week,” Information and Broadcasting Minister Ambika Soni told reporters in New Delhi.

Briefing reporters on the deliberations at the Cabinet’s meeting on Thursday, she said there was some discussion on the matter and it was decided that it should be taken up next week.

The panel had submitted its report to the government on 31st December last year recommending increases in the wages of the newspaper industry employees.

Earlier this month, Prime Minister Manmohan Singh had met the representatives of the employees and assured them that “I will do my duty”.

The employees have been agitating over the “delay” in government’s approval to the recommendations for past few months.