Chapter 4 enhanced production, employment, increase in the value of output due to quality improvement or otherwise. The benefits could be affected because of change in the location of project, time of sale or change in the grade. Moreover, the benefits could accrue owing to reduction in cost or gains from a mechanization of the process, from reducing the distribution cost and or by avoiding the losses. In social sector projects, the benefits could accrue by increasing the earning capacity of the institutions, say, by increasing the tuition fee in an educational institution. In certain projects like those of transport, benefits could accrue because of a saving in time, savings in operation cost, accident reduction and on account of new development activity. The projects have also some intangible benefits like better income distribution, national integration, national defence or just a better life <strong>for</strong> any segment of population like the rural population, especially of the far-flung and backward areas. Inter-Agency Coordination 4.23 With a view to avoid duplication of ef<strong>for</strong>ts and in order to ensure efficient implementation of the proposed project, it is highly desirable that all the relevant data have been obtained and the agencies concerned consulted. For example, in respect of a health scheme, in<strong>for</strong>mation about public and private sector institutions in the area, their staff and equipment and the number of persons served by them have to be obtained and reflected in the project. With the same end in view, data about the population of the area and the economic characteristics of the persons who are being provided service, as well as data about morbidity and incidence of epidemics during the last five years or so, have to be obtained. 4.24 Inter-agency coordination is also necessary <strong>for</strong> the availability of utilities, such as water and power supply, education facilities and housing. For example, be<strong>for</strong>e an industrial scheme sponsored by the Production Division is embarked upon, it is absolutely necessary that the clearance of the concerned agency is obtained <strong>for</strong> the availability of water supply and other utilities. As decided by the NEC in its meeting held on 4-7-1988, the Project document should clearly indicate that coordination with the other agencies to facilitate project implementation had been effected (Annexure-XVIII para v). Preparation of PC-I/Project Document Page 10 of 11 4.25 At present there are 14 PC-I <strong>for</strong>ms in vogue <strong>for</strong> various sectors/sub-sectors (Annexure-II). The requirements of all of them are, by and large, identical. It is necessary that in<strong>for</strong>mation in respect of each of them is provided on the basis of factual data. Minor schemes, irrespective of sector, estimated to cost upto Rs 1.00 million should be prepared on the pro<strong>for</strong>ma contained in Annexure-II. 4.26 Preparation of the project on the PC-I pro<strong>for</strong>ma is the pivotal phase of the project cycle. The maxim 'well begun is half done' is most appropriate <strong>for</strong> completing this phase. The Sponsoring Agency should be given or give itself adequate time to prepare a project. The time taken in the examination of a project would be in inverse proportion to the time taken in its preparation. Thanks to the ef<strong>for</strong>t, the project would in fact lend itself to smoother and speedier implementation. A hurriedly prepared project, on the contrary, would run a difficult course throughout the project period and be afflicted with time and cost overrun and may ultimately prove to be counter-productive. 4.27 The PC-I should be supported with a feasibility study, survey and investigation and market survey report etc. http://hd2/pc/popup/ch4_p.html 9/23/2010
Chapter 4 Page 11 of 11 4.28 The National Economic Council in its meeting held on July 4, 1988 had decided that the implementation schedule should be based on the Bar Chart/PERT/CPM. This decision of the NEC (Annexure-XVIII) needs to be strictly followed by the sponsoring agencies while preparing the project on the PC-I. This is essential <strong>for</strong> the proper physical and financial phasing of the project. http://hd2/pc/popup/ch4_p.html 9/23/2010