viswamy2k,
Please clarify –
Originally we installed plugins from local folder.
. Are you referring to plugins added via dropins or are you referring to archived update site?
The best way to add plug-ins is via update site. This would enable updates to be visible under Dashboard tab of MyEclipse Configuration Center.
In case you have chosen dropins / archived update site / add local update site, you need to manually update the plug-ins. Meaning remove the existing plugin and add updated plugin and restart the IDE.
Hope this helps.