Puducherry government to set up Project Management Unit for speedy execution of infrastructural projects

The decision to establish a PMU was based on a proposal submitted by NABARD Consultancy Services Private Limited (NABCONS)

The territorial administration has decided to set up a Project Management Unit (PMU) at the Finance Department to facilitate timely execution of civil works without having the burden of cost escalation.

The decision to establish a PMU was based on a proposal submitted by NABARD Consultancy Services Private Limited (NABCONS), a subsidiary of National Bank for Agriculture and Rural Development, offering project consultancy services to effectively monitor infrastructure projects.

The Finance Department in an order issued a few days ago, said the government has decided to accept NABCONS proposal to establish a PMU on nomination basis.

The setting up of the unit would facilitate timely completion of projects and thereby avoid time- induced cost escalation, as also reap the full expected benefits of projects in a timely manner, the order said.

The PMU would work under the direction supervision and control of the Secretary, Finance. The projects managed by the unit would have a cost threshold exceeding ?5 crore.

“At one of the quarterly review meetings of projects, we had offered to render our services through NABCONS for effective implementation of major infrastructure projects. Lack of proper planning has resulted in huge cost escalation of civil works and timely implementation, “ a NABARD official told The Hindu.

NABARD is one of the top lending entities for the Government of Puducherry. The PMU would provide technical support to the government in project management, monitoring and tracking the physical and financial progress of works.

Based on the monitoring of the works, the unit would alert the Finance Department on timely release of funds. The other mandate of the unit would be in scrutiny of detailed project reports (DPRs), vetting of tender documents, possible bottlenecks and corrective measures.

It would also monitor project’s compliance with environmental, social and governance norms. The unit would also assist the government in identifying source for funding and also prepare periodic progress reports of the project under implementation.

According to a senior official, the setting up of the unit would help in bringing synergy in execution of major infrastructure projects from the planning stage itself. At present, government departments appoint consultants for preparation of DPR and the consultation process between the implementing agency and the Finance Department would itself take time.

“The setting up of the unit under the Finance Department will help in speedy implementation of infrastructure projects, “ the official added.