robin review

8/8/2019 Robin Review

http://slidepdf.com/reader/full/robin-review 1/20

Objective---To study difficulties faced by the government in implementing the project.

Importance of the study ²to know about the importance of the project

1) benchmarking

2) marketing analysis3) financial analysis

4) difficulties come in that project

5) performance analysis

6) Guidelines for Performance Evaluation of the National Quality Monitors

7) ORGANISATIONAL STRUCTURE OF RC DIVISION

8) Social Assessment of Pradhan Mantri Gram Sadak Yojana

9) The PMGSY is a means of increasing agriculture and other income by improvingeconomic and social services in rural areas.

Introduction--- the Prime Minister¶s Rural Road Program - Pradhan Mantri Gram Sadak Yojana ± is an intervention undertaken by the Ministry of Rural Development as a poverty

alleviation Strategy. The program was launched in December 2000, and aimed specifically atconnecting rural habitations with the construction of all weather roads. In the first phase of the

program, those rural habitations with populations of over 1000 would be eligible, and in thesecond phase habitations with populations between 500-1000 would be eligible. In hill states,

desert and tribal areas with populations of over 250 would be connected. No further work can beundertaken by the PMGSY once a habitation is connected to another by an all weather road.

The PMGSY is a means of increasing agriculture and other income by improving economic andsocial services in rural areas. Along with the technical feasibility study of core link roads, it is

mandatory to analyse the strategic and practical needs of the people before reaching a final

decision of building the road with particular alignment and quality. Thus, a Social Analysis of those who are affected and benefited by the road connectivity should be conducted. Theassessment and recommendations, both, demand-people oriented approach and micro-planning.

Planning and implementation of PMGSY should also assess demand, absorptive capacity,rehabilitation issues as well as adverse impacts (if any) of such road links. Hence, the scheme not

only needs to take care of technical aspects, or quality of all weather road, but also take intoaccount local people¶s views, options, needs and experiences.

Keeping this in mind, in 2003, the Ministry of Rural Development (MORD) prepared anEnvironmental and Social Management Framework (ESMF) for application on Bank funded

works under this project, which was endorsed by participating states in 2004. The safeguardinstruments that were developed are (i) Environment and Social Management Framework; and

(ii) Resettlement and Participation Framework (R&PF). The implementation of the measuressuggested in these instruments need to be in conjunction with Operations Manual (OM) prepared

for the PMGSY road projects. Furthermore, the concerned legislations, policies and special provisions (Tribal, Vulnerable Groups etc.) need to be reviewed. The social issues are to be

addressed through participatory mechanism (Community Planning) involving informationsharing and sensitisation of PAPs / PAFs with the help of various agencies and communitygroups.



The process may be difficult and time consuming and sometimes steps are skipped. TheMinistryof Rural Development, NRRDA and Planning Commission have commissioned studies to

understand the impact, constraints, gaps etc. These studies have pointed out various gaps like:(iii) The Memorandum of Understanding signed between the project proponent and PAPs is not a

legal entity for mutation.

(iv) No verification of ownership of land impacted or likely to be impacted is done unless themlandowner has raised an objection during land width accretion. the last 4 years, the PradhanMantri Gram Sadak Yojana (PMGSY) has made a place for itself as a programmed characterized

by detailed planning, methodical execution, careful management and high quality consciousness.This has been possible due to the close interaction between the Ministry of Rural Development

and the State executing agencies as well as involvement of the Principal and State TechnicalAgencies and senior Engineers of the State and Central Governments including retired Engineers

working as National Quality Monitors. Clear and detailed documentation on the constructionstandards in the form of the Book of Specifications, Rural Roads Manual and Standard Data

Book published by the Indian Roads Congress (IRC) supported by the Quality ControlHandbook for quality management have contributed significantly in the process.

At the operational level, the establishment of PMGSY on a firm foundation has come through a

series of operational guidelines issued by the Ministry of Rural Development and the NationalRural Roads Development Agency (NRRDA) from time to time, mainly the result of Regional

Review meetings with the State agencies, on such matters as District Rural Roads Planning,Quality Monitoring, Online Monitoring & Management System, Fund Flow & Accounting

procedures, etc. Indeed the overall volume of such guidelines has become extensive enough for aneed to put them all down systematically in the form of one comprehensive µOperations

Manual¶. Hence this publication.

The Operations Manual is intended for day-to-day use as a comprehensive supplement to thePMGSY Guidelines on procedural aspects. On technical aspects the IRC publications will of

course need to be consulted. In the process of drafting the Operations Manual, efforts, have beenmade to address the need particularly of the Programme Implementation Units (PIUs) and much

of the Manual is consciously targeted at them, since ultimately the success of the programmeddepends on the degree to which the PIU understands and complies with the letter and spirit of the

PMGSY Guidelines.

Rural Roads being a State subject, the Operations Manual has rightly left sufficient flexibility

and scope for the State Government and the SRRDA to be able to issue detailed guidelines inkeeping with the procedures and requirements of the individual States. There is also a realisation

that micromanaging the programme centrally might neither be desirable nor feasible. At the sametime, there is an expectation that guidelines of the nature envisaged in the Operations Manual

will facilitate to the systematic implementation of PMGSY, and in fact State Governments mayfind it advantageous to adopt many of the principles and practices mentioned in the Manual in

rural roads Programmes other than the PMGSY.



State level Agencies

7.1 Each State Government / UT Administration would identify one or two suitable Agencies

(having a presence in all the Districts and with established competence in executing time-bound

road construction works), to be designated as Executing Agencies. These could be the Public

Works Department / Rural Engineering Service / Organisation / Rural Works Department / ZillaParishad / Panchayati Raj Engineering Department etc. who have been in existence for a large

number of years and have the necessary experience, expertise and manpower. No

Agency/Consultant shall be created by the States for implementation of the programmes. In

States where more than one Executing Agency has been identified by the State Government, the

distribution of work would be done with the District as a unit. In other words, each District will

be entrusted to only one Executing Agency. The Executing Agency will have a Programme

Implementation Unit (PIU) in the District, which should have an officer of the rank of

Executive Engineer as its head.

7.2 Every State Government / UT Administration shall nominate a Department as the Nodal

Department, who will have the overall responsibility for implementation of the PMGSY in the

State. This would be the Administrative Department responsible for the Executing Agency

entrusted with the execution of the road works. In the event of there being two Executing

Agencies, the Department responsible for the major of the two Agencies shall be the Nodal

Department. All communication between the Ministry of Rural Development and the State

Government would be with and through the Nodal Department / State-level Agency.

7.3 The Nodal Department will identify a State-level autonomous Agency (Society etc),

with a distinct legal status, under its control for receiving the funds from the Ministry of Rural

Development, as indicated in Para 18 below. If there is no such State-level Agency, the Nodal

Department will take steps to register an Agency under the Registration of Societies Act, (there

should not be more than one Agency), so as to be able to receive the funds. The Agency will be

headed by the Minister or the Chief Secretary and the Secretary in charge of the Nodal

Department or a senior officer will be the Chief Executive. All the proposals will be vetted by

the Agency before they are put up before the State-level Standing Committee and are sent to the

NRRDA for clearance by the Ministry of Rural Development.

7.4 Each State Government shall set up a State-level Standing Committee (preferably

headed by the Chief Secretary) to vet the Core Networks and the Project proposals to ensure that

they have been formulated in accordance with the Guidelines. The State Level Standing



Committee would also be responsible for close and effective monitoring of the Programme, and

oversee the timely and proper execution of road works.

8Preparation of Project Proposals and their clearance

8.1 After approval by the District Panchayat (refer Para 6.1 above), the proposals would be

forwarded through the District PIU to the State-level Agency (refer Para 7.3 above). The PIU

will at that time prepare the details of proposals forwarded by the Members of Parliament, and

action taken thereon, in Proformae MP -I and MP ±II and send it along with the proposals.

8.2 The State-level Agency shall vet the proposals to ensure that they are in accordance with

the Guidelines and shall place them before the State-level Standing Committee. The size of State

project proposals as well as the time when they would be forwarded to the NRRDA will be asspecified by the Ministry / NRRDA each year.

8.3 The State Level Standing Committee would scrutinise the proposals to see that they are in

accordance with the Guidelines and that the proposals of the Members of Parliament have been

given full consideration. After scrutiny by the State Level Standing Committee, the Programme

Implementation Units (PIUs) will prepare the Detailed Project Report (DPRs) for each proposed

road work. The preparation of DPR requires collection and analysis of data required for the

design of Pavement and Cross-Drainage works such as Inventory and Engineering surveys, Soil

investigations, Hydraulic data etc. The cost of preparation of DPR @ not more than Rs. 10000

per kilometre may be included in the Project Cost. Similarly, a fixed amount of not more than

Rs. 10000 per kilometre (on actual basis) may be included in the Project Cost as cost for fixation

of Sign Boards, Road Stones and other Road Furniture as per IRC specifications. Rupees 5000/-

per function for foundation/inauguration ceremonies may also be included. Attached to the DPR

will be a separate Benchmark indicator report giving status of key indicators of education, health,

incomes etc. of each of the Habitations proposed to be connected (Data from Habitation Data in

Format-I developed for the District Rural Roads Plans/ Census may be used).

8.4 The PIU will follow the following Guidelines in preparing the Detailed Project reports:

(i) The Rural Roads constructed under the Pradhan Mantri Gram Sadak Yojana must

meet the technical specifications and geometric design standards given in the Rural Roads

Manual of the IRC (Publication IRC:SP20:2002). Most of the new connectivity is likely to carry

traffic of low intensity. It may be noted that the Rural Roads Manual allows for a carriageway of



3.0m where traffic intensity is less than 100 motorised vehicles per day and where the traffic is

not likely to increase due to situation, like, dead end, low Habitation and difficult terrain

condition. To ensure economy in respect of link roads, the carriageway width may be restricted

to 3.0m in all such cases with corresponding reduction in roadway width etc. as per the Rural

Roads Manual.

(ii) The Rural Roads under the Pradhan Mantri Gram Sadak Yojana will be surface roads,

and, by and large, sealed surface roads. Roads with a bituminous or cement concrete surfacing.

The choice of surface would be determined, inter alia, by factors like traffic density, soil type

and rainfall, following the technical specifications laid down in the Rural Roads Manual

(IRC:SP20:2002).

(iii) Where the road work is passing through a Habitation, the road in the Built-up area and

for 50 metres on either side may be so designed that it is not damaged by water. For this the

roads will be designed and executed as Cement Road or with Paved Stones, besides providing

side drains. Appropriate side drains will also be provided, so that improper drainage does not

damage the road.

(iv) The Rural Roads Manual speaks of the advantages of using Modified Bitumen in place of

ordinary Bitumen. Where State Governments have taken a decision to use Modified Bitumen

[including Rubber Modified Bitumen (RMB)] in any of their Programmes, such use shall beextended also to the PMGSY roads. The use of Modified Bitumen (including RMB) would be

restricted to Surface Course only (wearing course). Care should be taken to ensure strict Quality

Control, in accordance with the provisions of IRC Code ± IRC53:2002. Special care is to be

taken for quality control by measures such as procuring Bitumen from the refineries,

procurement in bulk and rigorous testing for quality while applying the Bitumen. All the tests

prescribed in the Rural Roads Manual or by IRC:SP20:2002 or IRC53:2002 shall be followed.

(v) Wherever locally available material, including products like Fly Ash is available,

they should be prescribed subject to adherence to technical norms.

(vi) The Rural Roads constructed under PMGSY must have proper drainage facilities As

regards the Cross-Drainage works under the Programme, normally only minor bridges i.e. those

having a length of upto 15 metre would be taken up. Longer bridges would also be admissible



under the Programme but only after inspection by an officer of the rank of Superintending

Engineer or above in case of bridges between 15-25 metres and by a joint team of the State

Technical Agency and senior Engineers , who shall confirm the need as well as design of the

proposed structure. Due consideration needs to be paid to the cost and benefits accruing from the

bridge. Similarly, in case of the Hill States, the length of CD works could be longer but the cost

of one CD work should not normally exceed Rs. 25 lakh. The bridges may be so designed as to

serve, where feasible, as Bridge-cum-Bandharas. However, in such cases, prior commitment of

the beneficiary group / village Panchayat regarding its operation and maintenance should be

obtained.

9 Scrutiny of project proposals

9.1 Ministry of Rural Development has identified in consultation with each State

Government, reputed Technical Institutions to scrutinise the project proposals prepared by theState Governments, provide requisite technical support to the State Governments, and undertake

Quality Control tests upon specific request. These are being referred to as the State Technical

Agencies (STA). The coordination of activities of the STAs would be performed by the NRRDA,

who may add to or delete from the list of institutions, as well as to entrust specific tasks from

time to time. The Ministry of Rural Development/ NRRDA may from time to time identify

additional technically qualified agencies to provide these services to the State Governments and

to perform such other functions as may be necessary in the interest of the Scheme.

9.2 The PIU will forward the proposals alongwith the Detailed Project Reports to the State

Technical Agencies for scrutiny of the design and estimates. The Proformae F-1 to F-8 will form

part of the DPR. These will be forwarded at the level of the Superintending Engineer or the

supervising officer of the PIU, before they are sent to the State Technical Agencies. A summary

of the road works will be prepared in Proforma-µB¶, circulated by the Ministry / NRRDA.

9.3 The DPRs are to be scrutinised by the State Technical Agency (STA) in the light of the

PMGSY Guidelines, IRC specifications as contained in the Rural Roads Manual / IRC

SP20:2002 and the applicable Schedule of Rates. In doing so, it shall be ensured that no leadcharges would be payable for transportation of soil (except in case of Black Cotton Soil / Sodic

soil). The STA will countersign the Proformae, whereupon the PIU will forward the same to the

State-level Agency.



9.4 The State-level Agency will consolidate the proposals from each PIU, after verifying that

they have been duly scrutinised by the respective STAs. They will then prepare the State

Abstract and send all the Project proposals to the NRRDA alongwith the proformae MP-I and

MP-II of each District as well as the proformae.

9.5 The NRRDA will thereupon scrutinise the proposals from the State Level Agency to

ensure that the proposals have been made duly keeping in view the Programme Guidelines and

that they have been duly verified by the STAs. The proposals for each State would then be put up

before the Empowered Committee for consideration.

10 Empowered Committee

10.1 At the Central level, the Project proposals received from the State Governments would beconsidered by an Empowered Committee, to be chaired by Secretary, Department of Rural

Development. The representatives of the State Government, whose projects are being considered

by the Empowered Committee, may be invited to attend the Meetings, as and when required. The

Recommendations of the Empowered Committee would, thereafter, be submitted to the Minister

of Rural Development for clearance.

10.2 The Ministry will communicate the clearance of the Proposals to the State Government.

It may , however, be noted that clearance by the Ministry does not imply Administrative or

Technical sanction of the proposals. The well established procedures of the Executing Agency /

ies in this regard would continue to be followed.

10.3 Once approved, the alignment of the road should not be changed without obtaining the

concurrence of the District Panchayat, the State Technical Agency and the State level Standing

Committee.

11 Tendering of works

11.1 After the project proposals have been cleared by the Ministry, the Executing Agency

would invite tenders and commence work on the projects. The well-established procedure for

tendering, through competitive bidding, would be followed for all projects. All the projects

scrutinised by the STA and cleared by the Ministry, will be tendered as such, and no changes

shall be made in the work. The States will follow the Standard Bidding Document, prescribed by

the Ministry of Rural Development, for all the tenders.



11.2 All State level formalities relating to issue of tender notice, finalisation of tender and

award of works should be completed within 120 days of clearance of the project proposals

failing which it will be deemed that the works in question have been cancelled. A report on the

circumstances in which the work could not be awarded must be sent to the National Rural RoadsDevelopment Agency (NRRDA). The State Government would also stand to lose that amount.

11.3 In case the value of tenders received is above the estimate that has been cleared by the

Ministry, the difference (tender premium) will be borne by the State Government.

12 Programme Implementation Units

12.1 At the District level, the Programme will be co-ordinated, and implemented through the

Executing Agencies. While, for all the Districts, it is desirable that a dedicated Programme

Implementation Unit (PIU) is set up, this is especially desirable for all States having an annual

Allocation of Rs. 75 crore or more per annum under the PMGSY, and all the participating States

in the externally aided projects. The Programme Implementation Unit at the District Level may

typically be headed by an Engineer not below the rank of Executive Engineer. All PIUs will be

manned by competent technical personnel from amongst the available staff or through

deputationists. No new posts will be created for the purpose. In other States, the PMGSY works

will be executed by the Executive Engineers. The Executive Engineer as well as the heads of

PIU (as the case may be) will be designated as officers of the State Level Agency, so as to enablethem to operate on the funds of the Agency.

12.2 All staff costs will be borne by the State Government. The Pradhan Mantri Gram Sadak

Yojana does not provide for any staff costs.

12.3 No Agency charges will be admissible for road works taken up under this Programme.

The Executing Agencies will not levy charges in any form, such as Centage charges etc.Expenditure on foundation and inauguration ceremonies to be done by MPs, upto Rs. 5,000 per

function, may however be charged to the project.



13 Execution of Works

13.1 The relevant projects would be executed by the PIUs and completed within a period of 6

months, from the date of issue of the Work order. Delayed execution of projects, could adversely

affect clearance of the proposals in subsequent years. PMGSY does not provide for any cost

over-runs.

13.2 Except for Hill States, the Road works under the PMGSY shall not be taken up in stages.

Once road works are taken up, they should be completed to the requisite Technical

Specifications in the prescribed time-frame.

13.3 In case of the Hill States (North-East (except Assam), Sikkim, Himachal Pradesh,

Jammu & Kashmir, Uttaranchal) and the Andaman & Nicobar Islands, however, two workingseasons- about 18 months ± may be allowed to the Executing Agency to complete the projects

cleared by the Ministry of Rural Development under the Programme. This is to enable the

formation to stabilise during one season, followed by Metalling and surfacing in the subsequent

working season.

13.4 Any cost over-run, either due to time over-run or for any other reason whatsoever, would

have to be borne by the State Government. To avoid such a contingency, the Executing Agency

will incorporate suitable Penalty Clauses, as indicated in the Standard Bidding Document.

13.5 An important principle of the Pradhan Mantri Gram Sadak Yojana is the assured

availability of funds, so as to facilitate timely completion of road works. It shall be the

responsibility of the Executing Agencies to ensure timely payments to the contractors, subject to

satisfactory execution of work. Delays, in payment due, should be avoided.

13.6 To maintain quality and to ensure timely completion of works, the Ministry of Rural

Development may lay down a scheme of incentives/disincentives to the States.



14 National Rural Roads Development Agency

14.1 The Ministry of Rural Development have set up the National Rural Roads Development

Agency (NRRDA) to provide Operational and Management support to the Programme. The

NRRDA will provide support, inter alia, on the following:

(i) Designs & Specifications and Cost norms.

(ii) Principal Technical agencies (PTAs) and State Technical Agencies (STAs)

(iii) District Rural Roads Plans and Core Network.

(iv) Scrutiny of Project Proposals

(v) National Quality Monitors

(vi) Monitoring of progress of the PMGSY

(vi) On-Line Management & Monitoring System

(vii) Training, Workshops, Research, Pilot Projects and Literature.

(viii) Human Resource Development

14.2 In respect of the Pradhan Mantri Gram Sadak Yojana, all State Governments / UT

Administrations will ensure timely furnishing of all necessary reports, data and information to

the National Rural Roads Development Agency.

15 Quality Control and Supervision of Works

15.1 Ensuring the quality of the road works shall be the responsibility of the State

Governments/ Union Territory Administrations, who are implementing the Programme. To this

end, all works will be effectively supervised. The Quality Control Register prescribed by the

NRRDA shall invariably be maintained for each of the road works. Payment shall not be made to

the Contractor unless the tests have been found to be successful. The record of tests shall be

computerised on the format prescribed by the NRRDA.



15.2 The roads constructed under this Programme are expected to be of very high standard,

requiring no major repairs for at least five (5) years after completion of construction. In order to

realise this objective, suitable clauses relating to Performance Guarantee/routine maintenance

shall be included in the Contract Documents, as per the provisions in the Standard Bidding

Document. In particular, the State Government shall obtain a Bank Guarantee from the

Contractor for 10% of the value of the work, which should remain valid for the 5 year period and

should be discharged only after consulting the Panchayati Raj Institution responsible for

maintenance (See Para 17.1).

15.3 A three-tier Quality Control mechanism is envisaged under the Pradhan Mantri Gram

Sadak Yojana. The State Governments would be responsible for the first two-tiers of the Quality

Control Structure, and would also bear the cost of the two tiers at the District and the State level.

The PIU or the Executive Engineer will be the first tier, whose prime responsibility will be to

ensure that that the all the materials utilised and the workmanship conform to the prescribedspecifications. They shall also ensure that all the tests prescribed by the National Rural Road

Development Agency, are carried out at the specified time and place by the specified person/

authority.

15.4 As the Second-tier of the Quality Control Structure, periodic inspections of works will be

carried out by Quality Control Units, set up / engaged by the State Government, independent of

the Executive Engineers / PIUs. These officers/ Agencies would be expected to carry out random

tests and also get samples of material used tested in laboratories of the State Government as wellas, in certain cases, independent laboratories, say those of the State Technical Agencies. The

State Governments will issue the requisite guidelines in this regard.

15.5 It shall be mandatory to record, in the relevant module of the On-line Management &

Monitoring System (OMMS) , all the test results carried out by the two-tiers indicated above.

15.6 Each State government / UT Administration will appoint a senior Engineer (not below

the rank of Superintending Engineer) to function as State Quality Coordinator at the State

level. His / her function will be to oversee the satisfactory functioning of Quality control

mechanism within the State / UT. This function would also involve overseeing the follow up

action on the reports of the National Quality Monitors. The Quality Coordinator should be part of

the State level Agency.



15.7 As the third-tier of the Quality Control Structure, the NRRDA will engage Independent

Monitors (Individuals / Agency) for inspection, at random, of the road works under the

Programme. These persons are designated as National Quality Monitors (NQM). It will be the

responsibility of the PIU to facilitate the inspection of works by the NQM, who shall be given

free access to all records, administrative, technical and financial.

15.8 The National Quality Monitors, shall inspect the road works with particular reference to

Quality. They may take samples from the site and get them examined by any competent

Technical Agency / Institution. They shall also report on the functioning of the Quality Control

mechanism in the District. The Monitors shall submit their report to the NRRDA, through the

medium of the On-line Management & Monitoring System. The reports of the NQMs will be

sent by NRRDA to the State Government for appropriate action within period to be specified. In

respect of works-in-progress, in case quality check reveals µPoor¶ or µAverage¶ work, the State

Government shall ensure that the contractor replaces the material or rectifies the workmanship(as the case may be) within the time period stipulated. In respect of NQM Reports, the State

Government shall, each month, report on the action taken on each of the Reports pending with

the State Government. All works rated µPoor¶ and µAverage¶ during work-in-progress shall be re-

inspected by an NQM after a rectification report has been received from the State Government.

15.9 The State Governments / UT Administrations shall put in place systems to identify and

take appropriate action (including blacklisting in serious cases) against the Contractors and the

Field Engineers who are found negligent in ensuring the quality of road works. Where thecompleted work of a Contractor is found to be µPoor¶ or µAverage¶, the Contractor concerned

shall be blacklisted by the State and no PMGSY works are to be given to such Contractor in

future. States/ UTs should also consider blacklisting such Contractors for works under other

State Government programmes. The State Governments / UT Administrations shall ensure that

all the PMGSY road works qualify to be rated at least as µGood¶ during implementation and

µVery Good¶ when completed.

15.10 The On-line Management & Monitoring System has a provision by which a µRed Pole¶

would appear against a work if any of the tests on that road work are unsuccessful. Similarly

where the NQM finds that the quality of the Work is µPoor¶ or µAverage¶, a Red Flag appears

against the work. In case of a Red Pole, the payment shall not be made unless the work is

rectified and the tests are successful. In case of a Red Flag, the payment shall not be made unless

the Superintending Engineer (Supervisory Engineer to the PIU in case of PIUs) inspects the work

and is satisfied that all the defects have been rectified.



15.11 Recurrent adverse reports about quality of road works in a given District / State might

entail suspension of the Programme in that area till the underlying causes of defective work have

been addressed.

15.12 The State Quality Coordinator/ Head of PIU shall be the authority to inquire into

complaints/representations in respect of quality of works and they would be responsible for

sending a reply after proper investigation to the complainant within 30 days. The State Level

Agency shall monitor the disposal of complaints and the NRRDA shall liaise with the State

Level agencies to ensure prompt attendance of all complaints/representations.

16 Monitoring

16.1 Effective monitoring of the Programme being critical, the State Governments / UTAdministrations will ensure that the officials are prompt in sending the requisite reports /

information. to the State level Agency as well as the NRRDA. The On-line Management &

Monitoring System will be the chief mechanism for monitoring the Programme. To this end, the

officials are required to furnish, µon line¶, all the data and information, as may be prescribed by

the NRRDA from time to time, in the relevant module of the On-line Management & Monitoring

System. They shall be responsible for uninterrupted maintenance of the Computer Hardware and

Software as well as the Internet connectivity. The Software for the OMMS shall be supplied by

the NRRDA and it shall not be modified at any level in the States; any requirement or suggestion

for change shall be intimated to the NRRDA. In case of continued failure to update data on the

OMMS, further releases to the State could be affected.

16.2 The State Government should provide necessary manpower, space and facilities to set up

the Computer Hardware at the District and State Level apart from ensuring regular and timely

feeding of data. Since most of the data would reside on the State Servers, the State level Agency

must ensure that the State Server is functional all 24 hours.

16.3 It shall be the responsibility of the Executive Engineer / Head of the PIU to ensureeffective up-time of the Hardware and also the Internet connectivity, with the State Server and

the Central Server, of the Client Machines at the PIU/ District level. He /she shall be responsible

for the constant updating and accuracy of data relating to the progress of road works, record of

Quality control tests as well as the payments made. The data shall be updated as warranted but at

least once a week. He /she shall also ensure that the photographs and video clips of each road

work are regularly, and at least once every month, uploaded into the System.



16.4 Each State government would identify one officer of sufficient seniority and having

adequate knowledge of Information Technology to function as State IT Coordinator. His / her

function will be to oversee the regularity and accuracy of the data being furnished by the

Districts. The IT Coordinator, who shall form part of the State-level Agency, shall also beresponsible to oversee the upkeep of the Hardware and Software as well as the training

requirements of the personnel dealing with the PMGSY.

16.5 The District Vigilance and Monitoring Committee set up by the Ministry will also

monitor the progress and exercise vigilance in respect of PMGSY.

17 Maintenance of Rural Roads

17.1 While submitting the project for approval, each State Government / UT Administration

shall identify a suitable Panchayati Raj Institution (District Panchayat/ Intermediate Panchayat),

for undertaking the maintenance of the entire Core network and particularly the road works

constructed / upgraded under this Programme. The State Government should issue necessary

instructions to associate the identified Panchayati Raj Institutions with the execution of the work

at all stages, especially submission of periodic reports relating to progress and quality of works.

The State Authorities will be required to furnish an Undertaking that they would remit (to the

identified Panchayati Raj Institution), from the State Government funds, the requisite cost of

Maintenance. The State Governments will also offer an Undertaking for the release of

maintenance costs, alongwith their project proposals. The Ministry of Rural Development would

oversee the implementation of this undertaking. It shall be open to the State Governments /

Panchayati Raj Institutions to develop sustainable alternative sources of funding for undertaking

the Maintenance function. It must be emphasised that given the huge quantum of investment

involved in the Programme, the specification and enforcement by the State Governments of a

satisfactory mechanism to provide funding and other assistance for the proper maintenance of the

PMGSY assets will be key to continuance of the Programme in that State.

17.2 The Rural Roads will be handed over by the PIU, on completion of the contract

(including guarantee/maintenance period of 5 years), to the designated Panchayati Raj Institution

for Maintenance, and a separate report will be made in all such cases under OMMS giving the

name of the PRI and the date of its taking over.



Part III - Flow of funds, procedure for release and Audit

18 Flow of Funds

18.1 The State-level Agency (refer Para 7.3 above) shall select a branch with internet

connectivity at the State Headquarters, of any Public Sector Bank or Institution based Bank for

maintaining an Account of the Pradhan Mantri Gram Sadak Yojana. Once selected, the Account

shall not be changed to any other Branch or Bank. There will be a written undertaking from the

Bank that it will follow the Guidelines of Government of India for payments from the PMGSY

Funds. The concerned branch will maintain Internet connectivity and enter the data into the

relevant module of the On-line Management & Monitoring System.

18.2 The State level Agency will communicate to the NRRDA and to the Ministry the details

of the Bank branch and the Account number. The Ministry of Rural Development shall release

the funds, only into this Account, on the recommendation of the NRRDA, who shall satisfy

themselves that the requirements in the Guidelines have been met.

18.3 The State level Agency will maintain only one Account for PMGSY funds, from which

all payments will be made These shall relate to the Programme expenditure on road works. No

other administrative expenditures (such as purchase of vehicles and office equipment) shall bedebitable to this account.

18.4 The Programme expenditure will be regulated as follows:

18.4.1. There will not be separate bank accounts of PIUs for Programme expenditure. As

indicated in Para 12.1 above, the Executive Engineers of PIUs / Heads of PIUs (who are the

drawing and disbursing officers of the PIU) will be declared as the ex-officio members of theAgency, so as to enable them to draw on the funds of the Agency from the Programme Account.

They shall be the Authorised signatories for issuing cheques.

18.4.2 The Agency would nominate one of its senior officers, normally the Finance Controller,

or an officer not below the rank of a Chief Engineer, as the Empowered Officer. It shall be



open only to the Empowered Officer to inform the Bank of the names of Authorised Signatories,

for issuing cheques on the Agency¶s bank account.

18.4.3 The Empowered Officer will furnish this list of Authorised Signatories (ExecutiveEngineers of Districts / Heads of PIUs) to the Bank, apart from himself maintaining a record of

it. This list will be periodically verified to ensure its accuracy. The Bank will issue separate

Cheque Books to each of the Authorised Signatories, and will keep their signatures on record.

18.4.4 The Empowered Officer will also inform the Bank of the names of Authorised Payees

(contractors and suppliers with whom Agreements have been duly entered into, as well as

Statutory Authorities, such as ITO etc) and their designated payee accounts, and also the

amounts that are admissible against each of the Contractors and suppliers. This will be in

conformity with the Work Agreements. The Empowered Officer may lay down suitable limits on

monthly payments in line with the agreed Works Programme for the respective packages.

Standing instructions will be issued to the Bank Branches by the Empowered Officer in this

regard.

18.4.5 The Authorised Signatories will make payments, as per the established procedure, by

Account Payee cheque mentioning the designated payee accounts. They will immediately enter

the cheque and payee details in the Payment Module of the OMMS.

18.4.6 On presentation of the cheque, the Bank would satisfy itself that the payment details have

been entered in the Payment Module, and that the cheque meets with all other requirements,

among others, like signatures agreeing with specimen signatures, the cheque amount being

within the balance authorised limit, and the payee being the authorised payee, payee account

details being fully and correctly specified etc.

18.4.7 The Bank will not allow the funds to be used by any person other than the authorisedsignatories and for any purpose other than the authorised payment for Works taken up under the

PMGSY. Nor will it be open to the State level Agency to invest these funds in any other Bank /

Branch, whether for short or medium term, including under Fixed Deposits.



18.4.8 The Bank will render monthly account, in respect of PMGSY Funds, to the PIU, the State

level Agency and the National Rural Roads Development Agency .

18.4.9 A tripartite Memorandum of Understanding will be entered into between the Bank, State-level Agency and the Ministry of Rural Development wherein the parties would agree to abide

by the provisions of the Guidelines. In particular, the Bank will agree to abide by the instructions

issued, from time to time, by the Ministry of Rural Development /National Rural Roads

Development Agency (NRRDA) regarding the operation of the Account.

18.5 The NRRDA may, from time to time, issue such directives as necessary for smooth flow

of funds and effectiveness of the Programme.

18.6 The Accounting System to be prescribed by the NRRDA, which would be largely based

on the well-established Accounting system of the Works Departments, would be utilised for this

Programme.

18.7 Money accruing as Interest will be added to the PMGSY funds. The expenditure out of

this interest amount will be guided by the instructions / guidelines to be issued by the Ministry of

Rural Development / NRRDA from time to time. The Bank shall intimate to the State level

Agency as well as NRRDA, the interest amount credited by it to the Account from time to time.

19 Procedure for Release Of Funds to the State level Agency

19.1 Since the PMGSY has adopted a Project approach where road works have to be

completed within a stipulated time-limit, the cost of the projects cleared for a State for each

Phase of the PMGSY will be made available to the State level Agency in suitable instalments

(upto four instalments).

19.2 The first instalment in a particular year amounting to 25% of the value of projects cleared

by the Ministry shall be released after the project has been cleared by the Ministry and the

release of remaining instalments would be subject to utilisation of 60% of the total available

funds as well as completion of at least 80% of the road works upto the (but not including) the

year previous to the current year and fulfilment of other conditions, if any, stipulated while



releasing the previous instalment. Total available funds will be the funds available (including

interest accrued) with the State-level Agency at the time of the release of the previous instalment

/ plus the amount of the previous instalment.

19.3 For release of every instalment (except the first ), conditions prescribed at A and B below

will require to be met while those at C and D are one-time conditions to be met. The Conditions

are as follows:

A. Utilisation Certificate for the Funds released earlier. The Utilisation Certificate shall be

in the form prescribed.

B. A Certificate by the Bank Manager, indicating the balance amount on the date of issue

of the Certificate (this should tally with the on-line data).

C. A Certificate that works which were sanctioned more than two years earlier have beenduly completed and the funds released for such works have also been fully utilised.

D. For all releases after October of every year, production of an Audited Statement of

Accounts and a Balance Sheet, duly certified by a Chartered Accountant for the accounts of the

previous financial year.

19.4 For the purpose of releasing funds, the State would be the Unit.

20 Audit

20.1 The State level Agency will ensure that the accounts are audited by a chartered

accountant of standing within six months of the close of the financial year. This account will be

supported by a statement of reconciliation with the accounts of PIUs and a certificate of

Chartered Accountant on its accuracy.

20.2 In addition to the Audit by the Chartered Accountant, the works under this Programme

would be subject to audit by the Office of the Comptroller and Auditor-General of India

(C&AG). The Audit of the work done by the C&AG may cover aspects of quality, in addition to

financial audit.



20.3 Both the State level Agency and the PIUs must provide all information to District level

Vigilance and Monitoring Committees and the Panchayati Raj Institutions.

21Miscellaneous

21.1 The National Rural Roads Development Agency (NRRDA) will designate reputed

Technical and Research Institutions such as the Indian Institutes of Technology as Principal

Technical Agencies, to provide technical support and to take up research projects, study and

evaluate different technologies and advise on measures to improve the quality and cost norms of

Rural Roads

21.2 Within 15 days of the date of Work Order or at the time of laying of the Foundation

Stone for a road work (whichever is earlier), the Signboards along with the Logo of the PMGSYshould be erected at the site of road works. The Signboards should indicate the name of the

Programme (PMGSY), name of the road, its length, estimated cost, date of commencement and

completion of construction, name of the executing contractor and the Panchayati Raj Institution

maintaining it. It is desirable that this is in the form of a permanent brick-masonry/ concrete

structure at both ends of the road

21.3 The National Rural Road Development Agency may, in co-operation with the State level

Agency, organise suitable Training Programmes for the PIU personnel.

21.4 Planting of fruit bearing and other suitable trees, on both sides of the roads would be taken

up by the State Governments / UT Administration from their own funds.

21.5 The Ministry of Rural Development may, from time to time, issue such directions as may

be necessary for smooth implementation of the Programme.

22 Convergence

22.1 Rural connectivity is not an end in itself. It is a means. It is expected that the

connectivity will improve indicators of education, health, rural incomes etc., provided as a

follow up, and in consultation with the local Panchayati Raj Institutions, convergence is achieved

with other ongoing Programmes in these sectors. It is expected that the District Panchayat will



focus on these issues. Before the start of work on Rural Roads, the bench mark indicators may

be measured and attached to the detailed project report.

22.2 The NRRDA will provide 100% assistance for independent Studies to establish theimpact of the new rural connectivity in a District from time to time.