Under PMSIP, planning is one of the functions of the TMA that is to be strengthened by inculcating a planning culture in the TMAs. The planning office is to be converted into an information hub for guiding and helping Infrastructure & Services and Finance departments in identification of development projects. In this regard, PMSIP Action Planning was designed as a tool for rapid municipal infrastructure assessment leading to prioritization of development projects.

The planning exercise introduces TMA to a systematic, information based planning approach. The immediate purpose is to guide TMA leadership through a planning process leading to identification of projects. The most striking feature of the planning exercise is the involvement of stakeholders. The objective behind their involvement is to get their endorsement for development plan. This process is hence the amalgamation of technical inputs and the aspirations of the stakeholders.