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The PMU for EAPs    

Project Management Unit 

Finance Department, Government of Madhya Pradesh


Establishment of PMU & its responsibilities:  - 

For increasing adequate financial resources to supplement state fiscal policies for capital investments thereby accelerating developmental activities of the state, the State Government has to maximize optimum inflow of external funds.  In comparison to other states, there has been slow pace of implementation and low disbursement of assistance, receipts to the State, etc.   As such, there was a need for preparation of more professionally designed project proposals, ensuring better coordination between external donors and State government, prioritization of donors.  For all these activities, establishment of nucleus agency was felt necessary, which might look-after effectively all matters related to inflow of external funds by the government functionaries.  In this perspective, the Government of Madhya Pradesh vide Order No.1259-94-1-8-59 dated 29th November 1994 declared Director, Institutional Finance as Nodal Officer for ensuring coordination of Externally Aided Projects of the State. Thereafter, keeping in view of Government of India's suggestions for strengthening the administrative structure, the State Government decided to establish a "Project Management Unit (PMU)", under the direct supervision of the Principal Secretary, Finance and administrative control of the Commissioner, Institutional Finance, Madhya Pradesh, vide order No.F.17-2/96/I.F./IV Bhopal dated 24th February 1996.


2.         PMU was assigned the responsibilities of monitoring, controlling and making suggestions for all externally aided projects (proposed, new and already under implementation), which include ensuring qualitative improvement in preparation of project proposals, arranging optimum inflow of funds for completion of projects in a time bound manner, to sort out the problems arising during implementation of projects and monitoring of additional central assistance. Main assignments are as under:

         Issuance of directives/principles to prepare project proposals, to examine feasibility of these proposals, to explore possibilities of sanction by a donor agency, monitoring of project implementation activities, recurring expenditure during/after adoption of procedures, .

         To ensure effective coordination with implementing department(s) together with submission of information pertaining to implementation and progress to the State Level Committee on Externally Aided Project headed by the Chief Secretary

         To monitor all on-going projects, which includes preparation of Staff Appraisal Report (SAR), report on missions in accordance with agreements with external donors, monitoring of physical & financial targets etc. Apart, from monitoring and sorting out problems arisen during the implementation of project, issuing appropriate instructions to improve outcomes of the project. 

         To assist project-implementing units in procurement, civil works, obtaining advisory services, training and establishment issues etc. 

         To issue directives/guidelines to project implementing officers on the following :

        To prepare yearly plans and budget,

         To prepare supplementary requirements and arranging disbursement of funds to project implementing agencies,

         To submit reimbursement claims, 

         To propose appropriate provisions in plan & budget for externally aided projects.

2.1  To keeping close monitoring on reimbursement claims posed to Government of India, Ministry of Finance, Department of Economic Affairs and Comptroller, Aid, Audit & Accounts. 

2.2 Quarterly Monitoring of- project expenditure, sanction of major agreements and major activities of projects.

2.3  To ensure implementation of terms and conditions of the agreements, 

2.4  To remind project officers to complete accounts and audit of accounts, to reconcile expenditures with Accountant General and to ensure receipt and submission of audit certificate to external donor, 

2.5  To work as nodal agency with Government of India, Ministry of Finance, Department of Economic Affairs,

2.6  To coordinate for visits of missions from external donors,

2.7  Any other assignments given by the State Level Committee. 


3.    PMU has been elevated as a nodal agency for all the externally aided projects of the State. Implementing Departments will approach for all matters relating to external aid agencies/CLM through PMU. As such, all departments can approach to the central line ministry at Government of India level only after consulting Project Management Unit.


4.    PMU will prioritizes external aided project proposals under the guidance of State Level Committee (SLC).   It will also ensure coordination in prioritizing with Five Years/Yearly Plans and Budget allocations for different projects. 


5.    Concerned Department will ensure to nominate In-charge PMU as a Member of State Level Empowered Committees in projects. 


6.    State Level Committee for Externally Aided Project will be as follows:  


Chief Secretary        Chairman 
Principal Secretary, Finance   Vice-Chairman  
Principal Secretary / Secretary, Planning - Member  

Principal Secretaries / Secretaries of Project Proposal posing   departments

 - Member  
Commissioner/ Director, Institutional Finance      - Member  

Officer In charge / Additional Secretary / Deputy Secretary  (Project Management Unit)           

- Member Secretary


            Project Management Unit will act as Secretariat for State Level Committee on Externally Aided Projects.


7.  Keeping in view the importance attached with the assignment and to ensure speedy remedial measure in obviating obstacles, all the Departments at Mantralaya and Heads of the Departments will provide required information to the PMU in time bound manner