Manual for Development Projects - Planning Commission

Chapter-7
of those sponsoring ministries/ divisions, and executing agencies who are directly or indirectly involved
in project formulation, appraisal/approval and implementation, i.e. on daily basis at the project level,
monthly by the executing agency and quarterly by the sponsoring agency. The internal monitoring unit is
to work like an eye of the project management for ensuring the successful and timely completion of the
project. A close collaboration and understanding between the project management and the monitoring
unit is very important. The essential thing is the quick taking of appropriate decisions on the part of the
project management to remove the bottle-necks and solve the problems.
(ii) External Monitoring
"External Monitoring" which serves the objectives of higher level authorities outside project management
is always undertaken by an outside central agency like the Projects Wing of the Planning and
Development Division. This is done to watch the progress of development projects to gain inside
knowledge for the benefit of the planning agency from the macro-planning point of view and that of the
sponsoring agency for strategic feed-back on the progress of implementation, its impact on problems and
removal of bottlenecks. Accordingly, as per the Rules of Business, 1973 issued by the Cabinet Division
(updated upto February 1985), progress monitoring of all major development projects/ programmes,
identification of bottle-necks and initiation of timely action is included in the charter of duties of the
Planning and Development Division (Cabinet Division's d.o. letter No. 52/CF/81 dated February 26, 1981
also refers (Annexure-XLI). The external monitoring unit which works alongwith the internal monitoring
system, provides a link between the higher level authorities and the project management. The internal
monitoring unit has to feed the external monitoring unit with necessary information. The external
monitoring unit makes efforts for the preparation of special review reports and collection of information
on the spot, through field visits, to counter-check the validity of information being provided by the field
staff.
Monitoring Indicators
7.27 Conceptually, monitoring indicators are specific yardsticks which can measure progress or changes
in the results, achievements (output, effect, or impact) of a project/programme or a national plan. The
indicators are thus specific measures of the degree to which an activity or a project is producing its
outputs and achieving its objectives. The indicators can also be stated as specific targets, to be achieved at
specific points in time during the implementation stage of an activity or can be categorized by type, such
as, output or impact indicators. The indicators can be direct or indirect (proxy) - where direct
measurement is not feasible. The main monitoring indicators can be identified as under:
i) Primary
Completion of preliminaries like drawing, designing,tendering etc as per schedule.
Financial utilization viz-a-viz PSDP allocations, fund releases and item-wise cost utilization.
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