In the Budget Speech 2012-13, the Honorable Minister for Finance announced the launching of a new scheme namely "Legislative Assembly Constituency Asset Development Fund'(LAC-ADF).The scheme aims at creating durable assets for which each MLA will be allocated `5 Crore during a particular financial year for undertaking capital works in his/her constituency so as to improve infrastructural facilities in all the Assembly Constituencies.Major works of the choice of the MLA concerned will be taken up subject to the condition that the cost of works proposed during a year shall not exceed `5 Crore.

Asset means fixed assets for long term uses like buildings, roads, bridges, water supply, sanitation, irrigation, infrastructure, machinery and equipments and fixtures of permanent nature that forms part of infrastructure facilities of Government essential for imparting effective service to the citizens.

The LAC-ADF Scheme aims at the upliftment of infrastructure facilities under various Legislative Constituencies by creating durable physical infrastructure of capital nature.

The Scheme will be in force from 2012-13 onwards.

Each MLA will be allocated with `5 crore each year.

Nominated members of the State Legislative Assembly may select works for implementation in one or more constituencies anywhere in the state.

The proposal for the work shall reach the Finance Department duly recommended by the Administrative Department with detailed estimates for the works.Estimates shall be based on the latest schedule of rates.

Finance Department after examining the proposals will issue financial concurrence for the work.Thereafter Administrative sanction and technical sanction for the works will be issued by the designated authorities of the Administrative Departments as in the case of regular works.Departments/Agencies are not eligible for any supervision,centage charges and administrative charges etc.

The implementing Department concerned shall monitor the progress of the work and submit the proposal to Finance Department for releasing fund.

The works under the scheme will be implemented following established procedures /rules laid down by the State Government from time to time.

The fund should not be used for partly meeting the cost of other projects/schemes and should not amalgamate with other funds.

The ownership of the assets created with LAC Asset Development Fund would vest with State Government.The maintenance and upkeep of assets so created will have to be ensured by concerned department and will be subject to periodical audit and inspection by Finance Department.

In the event of change of MLA for whatever reason,the allocation,implementation,continuation of work will be governed in the same manner in which guidelines are framed for MLA Special Development Fund.

Finance (Nodal Centre)Department is designated as the nodal section to deal with the release and monitoring of the fund.The fund shall be released to the implementing Agency/Departments on the basis of the requirement,on requisition by implementing Agencies/Departments depending on the progress of work.The procedure being adopted for payments for regular works will be applicable mutatis mutandis for payments in respect of these works also.

Finance (Nodal Centre)Department is the nodal agency for the implementation of LAC Asset Development Fund in the state.All the Heads of Department should arrange to visit and inspect project sites,at least selected sites,once in six months by responsible officers and quarterly review meetings should be convened by the Heads of Department for ensuring that the work is progressing satisfactorily and as per the prescribed specifications.

Finance(Nodal Centre)Department will conduct surprise check on certain specific sites as and when required.Quarterly inspection of projects may be conducted by Finance(Nodal Centre)Department.Third party monitoring of the works undertaken shall be arranged by the Finance Department.