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Para 1.12 - PPR Preparation | KartavyaDesk

WORKS_MANUAL

Original Rule Text

2.2 Preparation of Preliminary Project Report (PPR) or Rough Cost Estimate 2.2.1 In case the work is to be executed under its own arrangement by the Ministry/ Department, a preliminary project report (PPR) or Rough Cost Estimate shall be prepared by the Works Committee based on Land, Site Details, functional and space requirements (or Various Facilities, Special Requirements/ Features and Broad Specifications for specialised Equipment and Plants), Layout Plans etc, with the technical details/ documents mentioned below being prepared by (or under the guidance of) the technical member(s) of the Works Committee (please refer to Para 3.1.4 (iv) below. In case of execution of Work through Public Works Organisation (PWO) or the Public Sector Undertaking (PSU – refer Para 3.1 below), on requisition from Ministry/ Department for procurement of works, PWO or the PSU to whom work is entrusted for execution shall prepare such PPR or Rough Cost Estimate and submit it to the requiring Department/ Ministry. Based on PPR and Rough Cost Estimate, the competent authority in Administrative Ministry/ Department grants in Principle approval indicating approval of the concept and scope of the project at the rough cost assessed. Ministry of Finance (DoE) has issued detailed instructions regarding appraisal and approval of Public Funded projects/ schemes17.

What This Means

Para 1.12 of the Works Manual outlines the process for creating a Preliminary Project Report (PPR) or Rough Cost Estimate before starting any construction or infrastructure project. Think of it as the initial planning stage where you figure out the basic idea, scope, and estimated cost of the project. This applies to all government departments and ministries undertaking construction work, whether they manage the project themselves or outsource it to a Public Works Organisation (PWO) or Public Sector Undertaking (PSU).

This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.

Key Points

  • •A Preliminary Project Report (PPR) or Rough Cost Estimate is required for all construction projects.
  • •The Works Committee prepares the PPR if the Ministry/Department manages the project directly.
  • •If a PWO or PSU is involved, they are responsible for preparing the PPR.
  • •The PPR includes land details, functional requirements, layout plans, and broad specifications.
  • •The PPR is used to obtain 'in principle' approval from the Administrative Ministry/Department, indicating approval of the project's concept and scope.

Practical Example

The Ministry of Jal Shakti wants to construct a new water treatment plant in Faridabad. Since the ministry plans to outsource the construction to the National Projects Construction Corporation Limited (NPCC), the NPCC is responsible for preparing the PPR. The PPR includes details about the land acquired, the required capacity of the plant, a layout plan showing the location of various units, and specifications for the filtration equipment. The estimated cost in the PPR is ₹50 crore. Based on this PPR, the Ministry of Jal Shakti grants 'in principle' approval, allowing NPCC to proceed with detailed design and further planning.

This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.

Frequently Asked Questions

What is the purpose of a Preliminary Project Report (PPR)?▼
The PPR outlines the basic concept, scope, and estimated cost of a project, allowing the administrative ministry to grant 'in principle' approval before detailed planning begins.
Who is responsible for preparing the PPR if the work is outsourced?▼
If the work is outsourced to a Public Works Organisation (PWO) or Public Sector Undertaking (PSU), they are responsible for preparing the PPR.
What kind of information should be included in the PPR?▼
The PPR should include details about the land, site, functional requirements, space requirements, layout plans, and broad specifications for specialized equipment.
What does 'in principle' approval mean?▼
'In principle' approval indicates that the administrative ministry approves the concept and scope of the project at the rough cost assessed in the PPR. It's a preliminary go-ahead.
Where can I find more detailed instructions regarding project appraisal and approval?▼
The Ministry of Finance (Department of Expenditure) has issued detailed instructions regarding appraisal and approval of Public Funded projects/schemes. Refer to their guidelines for further information.

This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.

Test Your Knowledge

Question 1 of 3

According to Para 1.12 of the Works Manual, if a Ministry/Department executes a construction project under its own arrangement, which entity is primarily responsible for preparing the Preliminary Project Report (PPR)?

Related Rules

Para 3.2.4Manual for Procurement of Works, 2022 - Para 3.2.4 - Chapter 3Para 3.5.13Manual for Procurement of Works, 2022 - Para 3.5.13 - Chapter 4Para 3.2.6Manual for Procurement of Works, 2022 - Para 3.2.6 - Chapter 3Para 4.10Manual for Procurement of Works, 2022 - Para 4.10 - Chapter 4Para 4.11Manual for Procurement of Works, 2022 - Para 4.11 - Chapter 4

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