Manual for Development Projects - Planning Commission

Chapter 4
4.11 All proposals for road making or earth moving machinery by the Government Departments/agencies
should be accompanied by an inventory of the existing strength of machinery of all the public sector
departments/agencies. Similarly, whenever a provision of new vehicle is made in the development project
or in non-development side, the concerned Ministry/Department/Agency should furnish as a supporting
document, full inventory of the existing vehicles both on development and recurring side, alongwith their
date of purchase, to justify the purchase of new vehicles.
Change in Scope of Projects
4.12 The physical and financial scope of a project, as determined and defined in the project document (PC-
I), is appraised and scrutinized by the concerned agencies before submitting it for approval of the
CDWP/ECNEC. Once approved by the competent authority the executing agency is supposed to
implement the project in accordance with the PC-I provisions. It has no authority to change and modify
the main approved parameters of the project on its own, beyond permissible limit of 15%.
4.13 However, if at some stage modifications/changes become imperative then project authorities should
revise the project and submit it for the approval of competent authority.
Cost Estimates
4.14 The cost estimates of a project have to be prepared with a lot of care so that these are not revised
again and again and implementation is not delayed due to non-availability of provision of funds and
revised sanction of the competent authority. Besides, the cost debitable to the development budget has to be
distinguished from the cost debitable to the revenue budget. The concept and definition of development
expenditure are explained in the Planning Commission's paper F.M. I (Annexure -X). The cost details have
to be given according to the requirements of the PC-I of each sector. However, the following guidelines
will generally apply to all:
(a) The local and foreign exchange costs have to be shown separately.
(b) The cost of imported items available in the local market should be reflected in the local component and
not in the foreign exchange component.
(c) A break-down of the total cost has to be given item-wise, e.g;
i) Land and development
ii) Civil Works
iii) Machinery and Equipment
iv) Supplies
v) Consultancy, if any
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9/23/2010