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PMI India Research & Academic Conference 2015, Mumbai
PMI India Project Management Regional Conference 2015, Pune

Technical Papers
BEST STUDENT TECHNICAL PAPER Research Trends in Project Management: A Review

• Mr. Milind Padalkar, doctoral student, Indian Institute of Management (IIM), Kozhikode
• Prof. Saji Gopinath, professor, IIM Kozhikode

Mr. Milind Padalkar, under the supervision of Prof. Saji Gopinath, carried out a meta-analytical study of the various researches that have linkages with project management or operations management.

Mr. Padalkar said that while there is an abundance of studies in operations management, research in project management is sparse. "The problem probably lies in project management's eclectic inter-disciplinary nature, which makes it extremely diffused," he remarked.

He averred that the growing interest amongst academicians in project management may help in filling the existing vacuum.

"Most current researches are empirical studies and tend to be anecdotal or heuristic. There are not many meta-analytic studies. It is extremely important that project management research is put under the lens and researchers identify limitations and shortcomings of methodologies," he added.

BEST TECHNICAL PAPER The Role of BIM in Construction Projects

• Prof. Shankar Sankaran, professor, Organizational Management, University of Technology, Sydney
• Prof. Perry Forsythe, faculty member, School of the Built Environment, University of Technology, Sydney, Australia
• Prof. Christopher Biesenthal, faculty member, School of the Built Environment, University of Technology, Sydney, Australia
• Prof. Hariharan Subramanyan, faculty member, Larsen and Toubro Institute of Project Management (L&T IPM), Vadodra

Information asymmetry occurs when one party in a project has more information that influences the decision making, and in the process, gains financial advantage over the others.

A collaborative research was carried out a team of researchers from the University of Technology, Sydney, and L&T Institute of Project Management, Vadodra in Australia and India to ascertain the role that Building Information Modelling (BIM) can play in minimizing information imbalances between contractors and clients.

Prof. Sankaran said that while there is a gap between theory and practice, the usage of BIM manages to create an open environment which may pave the way from the existing contractual system to a conducive system where there is better understanding between the parties.

Prof. Subramanyan said that while clients interviewed in Australia showed a keen interest in BIM, in India, except for large developers, most clients did not evince any interest. "This shows that BIM penetration in India is low and contractors are unwilling to share information. But the trend reveals that there will be a high usage of BIM in the coming days," he concluded.


Mr. Venkateswararao Surati, manager & Mr. Narismhan Raghvendran, engineering trainee, L&T Construction

The construction of roads and bridges in a congested road is a nightmare for both commuters and constructors. The construction of an elevated corridor in Kolkata along Kazi Nazrul Islam Sarani from Kestopur to Joramand is a case in point where engineers used innovative logistic plans, approaches, and techniques for project success.

Mr. Surati said that barring the foundation and superstructure that comprised deck slabs, the engineer employed structural steel for pile caps, anchor frames etc. They transported pre-fabricated steel components from the fabrication yard to the transit site in modified trailers.

"Each employee's role was identified and assigned a special cell to interact with government agencies and stakeholders to ensure smooth execution," he added.

Ms. Nishtha Jain, student, Indian Institute of Management, Kozhikode

The construction industry in India has been slow to accommodating newer methods because of its own deep-rooted cultural norms. It's hence no surprise that this industry experiences a large number of delays and spiraling of costs.

Ms. Nishtha Jain carried out a two-month-long study in a residential project in Chennai to ferret out alternative and more streamlined management practices.

"There has not been much research in India, and the primary focus of this study was to ascertain the feasibility of adopting the Lean construction model in project execution," she said. She added that the project manager plays a pivotal role in the implementation of Lean methods.

Mr. Bhavnesh Agale, student, NITIE, Mumbai

The Bandra Worli Sea Link project was commissioned by the Maharashtra State Road Development Corporation and built by Hindustan Construction Company. The sea link has cut down travel time for commuters. However, the project was delayed by over five years.

The project received only 4.7 hectares of land as against 27 hectares due to environmental concerns. The state government sanctioned only Rs. 100 crore as against Rs. 580 crore that was proposed initially, which led HCC to take loans.

Delays in payments, failure to impose security deposits on contractors, non-alignment of contract tenure to project processes, and work stoppage for nearly 18 months due to change in the contractor led to deficiency in contractor performance.

"To overcome challenges in such major projects, there needs to be a cost benefit analysis, coordination amongst stakeholders and contractors, efficient documentation, and environment impact assessment in the initial phase itself. There must be project monitoring mechanisms to avoid time and cost overruns," said Mr. Agale.

Prof. Swapnil Wanjari, assistant professor, Visvesvaraya National Institute of Technology, Nagpur

In the construction industry, the planning of resources is an extremely complex task, especially manpower planning because of the need for varied skills at various phases.

Prof. Swapnil Wanjari, along with postgraduate student Mr. Alex Jose, carried out a study to find ways to reduce manpower wastage. The study revealed that the general manpower requirement during project execution delineates a trapezoidal structure wherein the onset and the end phase required minimum and the middle phase required maximum human resources.

The researchers developed an algorithm to solve the resource leveling issue using trapezoidal leveling techniques. These techniques helped bring down the peak manpower demand per day in a construction project from 21 to 13, and streamlined the planning process.

Mr. Ganesh Shinde, student, and Prof. Vivekanand Khanapuri, associate professor, NITIE

Mr. Ganesh Shinde, under the supervision of Prof. Vivekanand Khanapuri, studied issues that plague the nuclear power plant sector in the country and what must go into their planning.

The researchers stressed on the need to abstain from just standard appraisal techniques in such large-scale technical projects.

Since nuclear plant projects carry risks not commonly found in other projects, it was extremely necessary to adopt a holistic approach for project risk management appraisal. Transparency with regard to information flow to the indigenous people of the area and a framework to ensure justice were key to success.

Citing the Kudankulam Nuclear Power Plant as a case in point, they said the project faced hurdles due to faulty government policies, including misrepresentation of facts to local citizens and not being transparent about the safety analysis report. Such projects must incorporate a study of political, social, technical, and economic risks.

Mr. Upendra Singh Kushwah, student, NITIE, Mumbai

Tele-density is low in India, with disparity between rural and urban areas. Mr. Upendra Singh Kushwah highlighted the challenges in setting up and running telecom towers.

Seventy percent of the approximately 400,000 mobile towers in India face electrical grid outages, forcing them to use diesel generators which lead to cost fluctuations. Operators need to take numerous clearances. Issues around pilferage of diesel also hinder operational efficiency.

"Renewable energy is an alternative, and the Department of Telecom has issued a deadline for service providers to reduce carbon emissions from mobile networks by 17 percent by 2019.Along with easy bank financing, softer interest rates, longer loan tenures, and the setting up of a single government agency for speedy approvals and certification of towers will ease some of the problems for telecom companies," he said.

Prof. Vivekanand Khanapuri, associate professor, and Mr. Amol Dudhabale & Mr. Ritu Ranjan, students, NITIE, Mumbai

With rural to urban migration growing, cities in India are facing more pressure. NITIE students, Mr. Amol Dudbabale and Mr. Ritu Ranjan, under the supervision of Prof. Vivekanand Khanapuri, studied the challenges in the implementation of Bus-based Rapid Transportation System (BRTS) in Pune and Ahmedabad.

They observed that while in Ahmedabad there was constant interaction with the various stakeholders during project implementation, in Pune, the stakeholders were kept out of the decision-making process.

The Pune project was hastily initiated without any planning in a bid to stem the lapse of sanctioned funds. Safety audits were not carried out, with the result that the city experiences more accidents today.

"On the other hand, in Ahmedabad, the BRTS has been a success because apart from planning, strong linkages were created with the stakeholders during project execution," the research concluded.

Prof. V.P.S. Nihar Nanyam, assistant professor, RICS School of Built Environment, Amity University, Noida

The construction industry has been facing flak as over 40 per cent of projects face time overruns ranging from one to 252 months.

Comparative studies show that development projects in countries like China, Bangladesh, and Thailand outshine India with respect to schedule performance.

Prof. V. P. S. Nihar Nanyam cited improper planning and budgeting, poor coordination, and inefficient monitoring as the main reasons behind time overruns.

Discussing a research carried out on a multi-storied housing project in Hyderabad, he said optimal selection of construction technology, framework, and crew is required during the planning stage.

He recommended the use of simulation tools such as Simphony to create prototypes that mimic different scenarios and gain a better understanding of workflow patterns, and identify bottlenecks and delays in the workflow schedule at the onset of project execution.

Prof. Tapash Kumar Ganguli, senior professor and dean-executive education, NICMAR, Pune

To cope with the fast changing business environment, organizations want team managers to not only have the maturity to lead people but also think, visualize, and empathize while executing projects.

"The need of the hour is training and development at all levels so as to improve the skills, attitude, knowledge, and competencies of individuals," said Prof. Tapash Ganguli.

He stressed on the need for a continual process of training and refresher courses comprising attitudinal development of project managers.

"The mantra is: 'Train people now or perish.' Studies have shown that in the next five years, Gen Y will need to not just upgrade hard skills but also acquire new attitudinal norms."

Ms. Anuradha Alladi, project manager, Tata Consultancy Services

Stakeholder management in construction calls for defined processes that can identify and capture stakeholders needs, take their inputs, support, and buy-ins.

Stakeholder engagement is measured through repeated interactions. Project managers must devise a strategy to build standardized processes derived from consistent behavior analysis of stakeholders.

Ms. Anuradha Alladi sets out a six-step stakeholder engagement process:

a. Perceive the interest in communication or interaction of involved parties.

b. Identify stakeholders on the basis of their behavior throughout the project lifecycle.

c. Characterize the nature of behavior (attitude) to analyze and plan projects.

d. Strengthen engagement capabilities between project teams and stakeholders.

e. Design the engagement process by involving all the stakeholders to partner, engage, monitor, and empower project activities.

f. Derive methodologies to engage with stakeholders and generate reviews and reports to address and identify issues in communication, if any.

Prof. Ganesh Devkar, associate professor, Center for Environmental Planning and Technology University

Prof. Ganesh Devkar assessed processes in public private partnership (PPP) projects using a case study from the National Highways Authority of India (NHAI).

In the NHAI project, the project identification phase involved a feasibility study and a preliminary project report. The team based project development on the feasibility report. A transaction advisor took care of procurement processes, while the supervisor consultant monitored project execution. A project implementation unit was set up to oversee client relationship management and an individual consultant helped with technical design reviews.

Half-yearly appraisals of the PPP process were conducted, along with stakeholder and risk management, balancing political and socio-cultural environments, and project governance to ensure better value for money.

"PPP is a business-driven procurement process that helps build capabilities to meet challenges. Monitoring large and longterm contracts while managing stakeholders and governance issues to develop feasible strategies is the need of the hour for PPP projects."

Prof. Jonardan Koner and Prof. Mona Shah, NICMAR, Pune

Across the world, large infrastructure projects are facing challenges that may not necessarily arise at the project level. Instead, the challenges may lie at the institutional level where proposals are faulty at its nascent stage.

Not many studies have focused on this aspect and there is not enough literature on it from the project management perspective.

The two NICMAR professors carried out an empirical study of thermal based and ultra mega power projects of Rs. 1,000 crore and above to identify the plausible causes of delays and cost overruns.

The findings showed a distinct relationship between institutional level failures and delays, which had a cascading effect on costs. The study also showed that improper planning led to cost overruns.

Prof. Vijaya Dixit, assistant professor, NITIE

This is the time for customization where companies accommodate customer feedback in production.

Prof. Vijaya Dixit has commenced a study to explore the facets and linkages in the rising trend of 'Engineer to Order' or customization, in an attempt to measure benefits arising out of this new phenomenon.

Speaking about her study which is still in incipient stage, Prof. Dixit sought the opinion of researchers and project management faculty members in the audience.

Intending to focus on ship-building yards as the key subject for the study, Prof. Dixit said that ship owners get involved right from the genesis of the project when they place an order for a vessel.

"The study would ascertain benefits customers derive from customer knowledge management and the level of involvement from basic design to providing advice during the execution phase," she said.

Mr. Vishwas Sharma, head - planning cost and contracts, L&T Shipbuilding, and Mr. Sujit Phunde, manager, L&T Special Steel & Heavy Forging

Indian shipyards in 2005-07 were hoping to bag major international ship-building orders. However, they lost the opportunity to other international players.

While the key reason at the surface level seems to be low productivity in ship-building activities, the other related cause is the inability to make appropriate projection of productivity targets.

Mr. Vishwas Sharma said Indian shipyards lack productivity calculations to indicate the effectiveness of production engineering, planning, and manufacturing operations, and have thus failed to win bids despite labor cost being almost 5-8 times lower than South Korea and Japan.

"While on the one hand, low productivity in ship-building activities had a cascading effect on quality, modification, and rework, project management did not take cognizance of the productivity aspect that also had an adverse impact."

Mr. Parin Gosar and Ms. Gayatri Soundarajan, students, project management, Veermata Jeejabai Technological Institute, Mumbai, and Mr. P.C. Sehgal, ex-director, Mumbai Rail Vikas Corporation, Western Railway

Shrinking spaces and looming costs in new projects initiation have once again brought to fore the need to relook at existing projects and find ways in which they can be upgraded or refurbished with prevailing resources, thereby slashing down costs and risks.

The researchers presented two cases wherein 'renovation projects' not only enhanced the existing projects but also made value addition in several areas.

Elucidating on case studies from the hospitality and transportation sectors, they pointed out that both the cases helped grow the sector in the long run.

In hospitality, there is growing consensus that incorporating new facilities in existing infrastructure works better than investing in new construction. In transportation, the study revealed that the suburban railway's project to upgrade coaches, coupled with an increase in the number of rakes, led to a jump in the number of commuters.


Ms. Adity Bhushan, senior manager, Biocon Ltd.

A typical pharmaceutical project has teams from research and development, regulatory, production, quality, and IT working together. Projects that follow principles of Lean methodology must identify and eliminate wasteful activities that add to project cost and time without adding any value.

Ms. Bhushan said Lean helps project managers to understand the purpose behind creating the intended result, define a process to provide methods to reach that end result, and manage people involved in the project.

"Since project and program management have yet to be established as a special discipline in the pharmaceutical industry, the focus is on adopting best practices from other industries," she explained.

The standardization of project management processes to achieve project excellence at Biocon has led to an organizationwide change with more transparency and uniformity, coupled with consistency in delivery, improved customer satisfaction, reduction in project failure rate, decrease in costs and redundancy of documents, better accountability with increased efficiency, and credibility of the organization.

Prof. Jonardan Koner, professor, NICMAR

The need to study the impact of Enterprise Resource Planning (ERP) in infrastructure project management is fast rising, as an alarming 74 percent of ERP projects fail. The reasons for failure could be inefficient manpower planning and communication, inadequate project monitoring techniques, or contractor-client differences. Also, increasing complexity means the project control process is variable and time-consuming.

Prof. Jonardan Koner used the Udhampur Srinagar Baramullah Rail Link project to illustrate how the implementation of digital video monitoring technology helped cut down project time and improved project monitoring. In this case, the project site's Internet Protocol address was connected to the existing customized ERP system to enable online monitoring from the corporate office.

It also eliminated the need to travel to the site for inspection; made data access possible from multiple locations; and helped in monitoring progress, safety, and workers' performance.

Prof. Seshadri Viswanath, professor, Shri Vile Parle Kelavani Mandal's Narsee Monjee Institute of Management Studies

New hi-tech products or services can be game changers for an organization but implementing such changes needs to be carefully planned, especially if new technology is being used and the product is being developed in-house.

Prof. Seshadri Vishwanath cites the case of a motor company where the cost was reduced by 30 percent when processes were modified using new raw materials. The company's R&D also developed a new process technique that contributed to 10 percent saving in the overall cost. The motor division ran a prototype under R&D surveillance, which was later commercialized.

The factors that contributed to project success were in-house high performance R&D labs, efficient networking and stakeholder management, and middle management leverage to approach top management for approvals.

"Good processes, a clear business case, an internal project champion, and effective people management are the key to driving large-scale projects," said Prof. Vishwanath.


Mr. Mayur Nawale, student, Veermata Jijabai Technological Institute, Mumbai

Small and medium enterprises will benefit from the introduction of standardized project management practices in their daily operations through the productivity improvement tool (PIT). These tools provide tailored solutions for project planning, estimations, data analysis, reports, and project monitoring.

"Data entry of project details into the PIT tool must be made mandatory. This facilitates the generation of daily/weekly reports to analyze lags and leads, identification of non-productive time of employees through actual versus estimated time charts, and the generation of pie chart reports on time lags between different project phases," said Mr. Mayur Nawale.

It enables the project manager to establish a project management life cycle, revise processes, estimate actual time taken to complete a task, identify bottlenecks, and set benchmarks for future projects.


Prof. Roger D. H. Warburton, associate professor, Metropolitan College, Boston, USA

Earned value management (EVM) is a well-known technique to control time and cost of a project but there is very little theory to support schedule estimations. EVM provides schedule variance and schedule performance index (SPI) only as early warning signs of cost overruns. Since it cannot predict schedule delays, EVM cannot answer questions like "How long will the project take to finish?"

Earned schedule relies on a simple assumption - a constant labor rate, which places a restriction on projects in which labor curves are more S shaped.

An effective theoretical model was required that would use real-time data to make realistic calculations of the final project schedule.

"SPI is constant at only the initial phase of a project. Thus, by calculating from early SPI we can arrive at revised schedules, which in turn would provide an estimate of the final project duration," said Prof. Warburton.

This methodology is better than existing schedule prediction models and helps in understanding scheduling concepts better.

Mr. Raju Rao, founder & principal consultant, Xtraplus Solutions

A typical scale-up project can be large and complex with diverse stakeholders, but the approach of scale-up projects of different industries must be different.

Scaling up and assessing project complexity through organizational project management (OPM) can be distributed across project, program, and portfolio management domains.

OPM is feasible for both procedure as well as principle based scaling up. A portfolio will have multiple programs, which in turn, will have numerous projects.

"Scaling up of McDonald's is simple where the base model remains the same and just the processes are replicated. The proposed OPM structure will be a portfolio, with each city taken as a program," explained Mr. Raju Rao.

A proposed OPM structure for a public private partnership, however, means managing dissimilar projects through programs and portfolios. Such projects have to take into account factors such as project size, outcomes, priorities, implementation process, work culture, and capabilities factors.

Prof. Chakradhar Iyyunni, faculty member, Larsen & Toubro Institute of Project Management and guest lecturer, NITIE

For large portfolios, organizational support is a critical success factor. Portfolio evaluation helps analyze the capability to handle a portfolio, besides identifying and managing risks.

Allocating the best resources, making working capital easily available, senior management's involvement in the project, and hassle-free inter-departmental interactions must be prioritized.

Project managers who are not well versed with prioritization and have large accounts to handle tend to falter when risks are manifold. Risks to projects from lower prioritization result in a delayed organizational response.

Portfolio management involves positive risk such as research and development,and negative risk such as an inefficient or non-performing team.

"It is important to conduct portfoliorebalancing through multi-tasking and flexibility to outsourcing. There must also be a correlation between portfolio management and organizational design and delivery excellence models."


Prof. Ramakrishna Nallathiga, associate professor and head - real estate and urban infrastructure management, NICMAR, and Ms. Aarti Wakhloo and Mr. Avirup Bhattacharya, students, NICMAR post-graduate program

Despite a majority of infrastructure projects in India witnessing big delays, not many studies have been carried out to capture delays from the perception of stakeholders.

Prof. Nallathiga, along with post-graduate students, Ms. Wakhloo and Mr. Bhattacharya, explored the factors behind project delays from the stakeholder's point of view. They showed how the use of the relative importance index demonstrated a lack of co-operation among project stakeholders.

"Our study also showed that the clash of perceptions, especially in infrastructure projects, can be mitigated through confidence building and trust developing measures," they said.

The study also brought to fore the need for an attitudinal change during planning, bidding, and implementation of infrastructure projects, and the setting up of a monitoring mechanism to focus on disputes among project stakeholders.

Prof. Rupesh Kumar Pati, associate professor, IIM Kozhikode & Ms. Nishtha Jain and Mr. Vipin Kumar, students, IIM Kozhikode

The ambitious Aadhar project that set out to provide a unique identity number to each Indian citizen has been running into rough weather since its inception with risks ranging from duplication and fake identities to its very implementation.

Under the supervision of Prof. Rupesh Kumar Pati, Ms. Jain and Mr. Kumar carried out a study to find the factors that have impacted the project.The study used secondary data from newspaper articles, research papers, and government reports.

The researchers said the main challenges were around the storage, monitoring, and controlling of data. Moreover, since citizens already had different identity cards, they did not see the need for an Aadhar card.The use of bio-metrics for data also proved to be fallible in nature. These problems have made it extremely important to review the project mechanisms and find solutions to ensure robustness in enrollment, scheme linkages, and security.

Mr. Samrudh Hegde Desai, business development manager, AlterEnergyz, and Prof. Purva Hegde Desai, professor, department of management studies, Goa University

Mounds of garbage strewn across street corners in Goa is affecting not just the flow of tourists but also causing environmental hazards.

Mr. Samrudh Hegde Desai said successive governments have focused on big waste treatment plants, and not taken a holistic view of the problem.

Conventional waste management programs have failed, as most treatment plants lack capacity and the waste collection method is faulty due to in-built limitations.

"We carried out a study of alternative waste disposal models. Organic waste management through a decentralized system of setting up bio-gas plants can be an effective way to tackle biodegradable waste.? To transform Goa into a 'Green state', there needs to be greater awareness of such alternative models.


Prof. Kappagomtula Lakshminarasimham Chandrasekhar, professor, VIT University, Vellore

China has unique customs and techniques of social interaction, such as preferring to deal with only those people and things whose knowledge they possess beforehand.

"Chinese teachings follow the Confucius doctrine that emphasizes on cultivating morality, interpersonal relationships, family and group orientation, respect for age and hierarchy, and avoidance of conflicts," said Prof. Chandrasekhar.

In projects, apart from the typical managerial functions of planning, staffing, and communications, there are also sociocultural factors that determine outcome.

"Accomplishments of project activities are purely based on relationships. China is a collective society, where individuality has no place and group dynamics play a big role," he said.

Through this examination of Chinese socio-cultural factors, Prof. Chandrashekhar explained the reasons behind the success of infrastructure projects in China.

Prof. Hariharan Subramanyan, faculty member, Larsen and Toubro Institute of Project Management, Vadodra

Engineering colleges in India are bound by criteria set by the National Board of Accreditation (NBA) that promotes quality technical education. In 2013, the NBA laid down certain additional assessments for accreditation.

Institutes require 'graduate attributes' for a course to be considered for accreditation such as engineering knowledge, problem analysis, environmental sustainability, ethics, communication, project management, and finance.

Focusing on the role of project management and finance in engineering programs, Prof. Hariharan Subramanyan said there needs to be an analysis to understand whether the current project management knowledge being offered meets industry expectations.

He said the curriculum is designed to offer flexibility in concepts of project organization, project initiation, and planning.

Recommendations were made on the need for hands-on project management tools and case analysis study, building project management knowledge at the curriculum design level, and emphasis on experimental learning.

Mr. Asim Prasad, deputy general manager, GAIL (India) Ltd.

Complexity, dynamism, diversity, limited resources, risks, and uniqueness are typical characteristics of an infrastructure project. Project executives need to adopt an open approach to manage such dynamics in infrastructure projects in India.

Project formulation is through stakeholder analysis where stakeholders are identified, grouped, and prioritized to monitor and direct their requirements into the project plan. The degree of agility of a project is directly related to stakeholder analysis.

Project agility has a direct relationship with project risks, and mechanism to assess, reviews, and mitigate risks. Risks are then mapped to the work breakdown structure. The more the levels in which the project is decomposed, the greater is the project agility.

"When projects move from execution to the operational phase, agility takes full shape, stakeholders enjoy success of the project, internal stakeholders derive benefits, and best practices and a lesson learnt exercise is formulated for the project team," explained Mr. Asim Prasad.


Mr. Raju Rao, founder and principal consultant, Xtraplus Solutions

The work breakdown structure (WBS) is a basic technique of bifurcating work on the basis of deliverables. However, a survey on WBS depicted a gap between the processes being practiced and has been prescribed in PMI's A Guide to Project Management Body of Knowledge (PMBOK® Guide). The differences are mainly due to standards not being able to be applied to domain specific situations.

Mr. Raju Rao finds that WBS interfaces with knowledge areas such as time, cost, quality, risk, and procurement.

He recommends dynamic WBS that structures the WBS components in different ways at different project stages so that practitioners can use any approach that best suits the parameters they are analyzing or the objective they are seeking. "A project manager must structure and re-classify WBS elements, also known as work packages in a work breakdown structure, based on the objective. A similar approach can be followed in other knowledge areas with different descriptions for each technique," he said.

Prof. Saroj Koul, professor, OP Jindal Global University, Haryana

As India aims to increase its steel production, the focus is on the success of new plant projects and expansion of existing ones. The identification and assessment of risks and approvals will play a big role.

Risks at the pre-project phase involves activities like selection of product, capacity, and process route, and the adoption of new or cheaper technology. Delay in regulatory and statutory compliances, non-availability of sufficient finance, and manpower are a few other risks.

Unfavorable health, safety, and environment during project execution, slow or insufficient fund flow, variation in forex rate, and credit and liquidity contribute to risks at the project stage.

Post project risks include unsecured availability of raw materials, downward trend in the economy, less access to technology upgrades, business competition, and changing government policies.

Once risks are identified, the key is to maintain profitability of steel manufacturing units irrespective of the existing risks. The risk management factors must be integrated to balance the focus on cost and optimize value and supply chains.

Mr. Atul V., senior general manager, SMS India Ltd.

India is aiming to produce over 250 million tons of steel and gain a larger share of the world market.

The Government of India is encouraging public and private sectors to improve capabilities by promoting a diverse product portfolio mix. The two pronounced forms of finished steel are long and flat products. In India, there is demand for bothtypes. "The private sector produces both types, whereas the public sector produces either flat or long steel," he said.

For integrated steel plants in the private sector, it is necessary to study the risk factors during capacity enhancements, followed by an analysis and implementation of strategies to mitigate risks.

Creating a product portfolio mix of multiple or differentiated supply chains that meet different market needs will provide stability and enable producers to meet emerging demand.

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