Manual for Development Projects - Planning Commission

Chapter-7
viii) Mid-year review by Finance and Planning Divisions:
In order to relate release of funds to actual utilization, a mid-year review during November-December
should be held. At this review, to be jointly conducted by the Planning and the Finance Divisions, the
funds utilization capability of the executing agency as well as progress on projects should be appraised
and release of funds adjusted accordingly.
ix) High-level Federal Projects Review Board:
A high-level Federal Projects Review Board should be set up under the President/Prime Minister which
should meet about twice a year to review major projects on which serious implementation problems have
arisen.
Monitoring Methodology - Methods and Techniques:
7.34 The methods or techniques adopted for project monitoring should effectively measure the progress
of a project, in comparison to its approved cost, scope, time schedule and objectives and be capable of
producing the information, according to the requirements of all concerned. The implementation schedule
of the smaller projects may be prepared in the form of Bar Charts. However, for the major projects, the
project management must use modern network methods (CPM/PERT) to plan in advance, time and
resources required for completion of individual activities. All these techniques can be applied effectively
for progress monitoring of capital expenditure strictly in accordance with the physical scheduling. The
NEC at its meeting held on July 4, 1988 also directed that the implementation schedule be based on Bar
Charts/PERT/CPM, which should essentially form part of every project document. It further directed that
the schedule rates used in estimating project cost should regularly be updated by taking into account the
market rates, instead of allowing across-the-board premium on the schedule of rates.
7.35 The monitoring methodology being followed by the Projects Wing since its creation in 1983 is
briefly described below:
(a)Project selection criteria:
The Projects for monitoring/evaluation are selected on the basis of the following criteria:-
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