These Guidelines have been approved by the Cabinet after extensive inter-ministerial consultations. The institutional structure envisaged under these Guidelines requires the creation of a two-tier mechanism for monitoring PPP projects. A Monitoring Unit would be set up at the project level while a PPP Performance Review Unit would be constituted at the level of the Ministry or the State Government, as the case may be. Monitoring is to be carried out primarily through a reporting mechanism. The Monitoring Reports for each project would include compliance of contract terms, adherence to time lines, assessment of performance, remedial measures and imposition of penalties.