A separate Division named 'Project Appraisal Division' was set up in the erstwhile Planning Commission in 1972 to undertake techno-economic appraisal of major projects and programmes in the public sector for facilitating investment decisions by the Government.
It was reconstituted as Project Appraisal and Management Division (PAMD) on 6th January, 1994. The PAMD undertakes appraisal of public funded plan projects and schemes in consultation with the subject divisions of the NITI Aayog before these are considered for recommendation/decision
by the Public Investment Board or Expenditure Finance Committee depending upon the nature of the project and project cost. The Projects / Schemes costing >Rs.500
crore are appraised by this Division (w.e.f. 29-08-2014 as per enhanced delegation
of powers issued by the Ministry of Finance (Department of Expenditure) vide O.M.
No. 24(35)/PF-II/2012 dated 29th August 2014).
The appraisal by PAMD broadly includes need and justification for the project/scheme, linkages with the plan, demand-supply
gap in development, technical feasibility, organizational, managerial and financial
capabilities of project authorities, reliability of cost estimates, financial and economic viability etc. of the projects/schemes.
In addition, proposals for Revised Cost Estimates are also
appraised by PAMD. PAMD’s officers represent Planning Commission in the Standing
Committee on Time and Cost Overrun, as constituted by the Ministries/Departments.
PAMD as consulting Division also offer comments on proposals of ‘In Principle Approval’
of new schemes /projects.