Manual for Development Projects - Planning Commission

Chapter 4
should re-order the priorities of the existing projects to accommodate the new priority within the available
resources. What happens is that both the old and new priorities are sought to be accommodated in the
limited available resources.
4.3 At the time of approval of the projects, the availability of the resources in the Plan and PSDP should be
looked into very carefully. The sponsoring agencies should structure their priorities according to the
available resources and not come up with an over-ambitious programme, which may not be possible to
implement.
4.4 The financial schedule must be included in the PC-I and linked with the implementation schedule. The
sponsoring agency should satisfy the approving authority as to how the proposed financial requirements of
the project will be adjusted in the Plan.
4.5 Some sponsoring agencies suggest that the detailed design and drawings etc., of the project should not
be a pre-requisite for the approval of the PC-I. The approval should be given on the basis of the rough cost
estimates, which may be adjusted within the permissible limit of a 15% increase. In this connection, the
decision of the NEC dated 4-7-1988 is as under:-
"Within six months of project approval, detailed design and costing should be finalized and submitted to
the competent authority. Implementation of such project components, which require detailed designing,
should be started only when these have been finalized".
The above decision of NEC should be strictly followed by the executing agencies.
4.6 The NEC further decided in the same meeting that all PC-Is costing Rs 50 million and above should be
supported by a feasibility study. However, this does not rule out a feasibility study in the case of PC-Is
costing less, where it may be needed.
Location, Area and Population Coverage
4.7 It should include the following:
i) Place and administrative district where the project is located.
ii) Map of the project area.
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iii) Reasons for selection of location. In this connection it may be noted that many projects have suffered
tremendously in the past from cost over-runs and delay in implementation due to hasty selection of site.
The project also suffer due to delay in acquisition of land. Therefore the availability of land needs to be
assured. In selecting the location, area and population to be served by the project, the income and social
characteristics of the population will have to be kept in view. Similarly, the economic characteristics of the
area i.e. present facilities and availability of inputs and regional development needs will also have to be
taken into consideration.
iv) PC-I form should clearly indicate that the environmental aspects of the project have been duly taken
into account.
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9/23/2010