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Project Monitoring Unit


General Guidelines for Project Formulation

1.  The project to be identified.

  • A tentative view of the project objectives, costs and benefits, project size, time frame etc., to be formulated
  • A concept paper in 3-4 pages to be prepared
  • Donors to be approaced to find out which donor is interested in the project
  • The most suitable donor to be selected

2.       Government Departments are not to establish direct contact with donor, if informal contacts are made, the PMU in FD, Govt. of Karnataka, the concerned line ministry in Govt. of India  and Ministry of Economic Affairs in Government of India to be kept informed.

3.  The terms and conditions of the lending agency to be ascertained.

  • The state resources required to be assessed and a project feasibility report to be prepared.

  • Along with the report the Administrative Department should get the concurrence of Finance Department/ Planning Department  on file.

  • Then the file should be sent to Planning department for placing before the State level Coordinating Committee.

 4.    The detailed project report is to be prepared, if necessary with the help of consultants.

  • If appointment of consultants is to be made and TA to be obtained from the Donor Agency for that propose, proposal for TA on file should be sent to the Finance Department  and planning Department for concurrence, then it is to be placed before SLCC and cabinet where ever necessary for final clearance.

 5. The project report is to be sent to planning commission, and concerned line Dept, in Govt. of India for clearance.

6. After clearance from Planning commission and concerned line Dept. the project report will be sent it   Department of  economic affairs,  Govt. of India who will finally send it to the lending Agency.

 7. After the project is accepted by the donor agency, the project appraisal to be done.

  • Memorandum of Agreement to be signed by Govt. of India/Govt. of   Karnataka.

8.     Since the process of funding is that of reimbursement through the channel of ACA , sufficient budget provision is to be made.  The implementation of the project should be started as per the time schedule.

Government Orders

General Guidelines for Project Formulation