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It, however, ensured that the concerned ministries would not wash off hands from the programmes and projects coming under this unit's command, stating that the primary responsibility will remain with them for implementation, monitoring and follow-up actions.
A PMO release described the new unit as an "oversight mechanism" to improve monitoring arrangements, delivery of output and transparency.
It said the unit has been set up in the PMO in pursuance to the announcement made in the President's Address to both the Houses of Parliament on June 4.
Though the release was silent on the personnel who will man the unit, sources said Dr Sanjaya Baru, former media adviser to the PM and a former newspaper editor, are likely to head it.
The tasks assigned to the unit are to ensure effective delivery, promote outputs, trouble shooting through periodic reviews, evaluation of impact and transparency by making the concerned ministry place information to the extent possible in the public domain.
The unit will be giving a quarterly report on performance of the programmes and projects under its review.
Key projects like National Rural Employment Guarantee Scheme, National Rural Health Mission, Sarva Shiksha Abhiyan, Bharat Nirman, Jawaharlal Nehru National Urban Renewal Mission, Rajiv Awas Yojana, Multi-Sectoral District Plans for Minority Concentration Districts -- are the first being brought under the close scrutiny of this unit.
Other projects listed for monitoring by it include Right to Information, Public Data Policy, Annual Reports on five identified topics, setting up Independent Evaluation Office, Prime Ministers Reconstruction Plan for Jammu and Kashmir, Assam Gas Cracker Project and development of land ports.