PMI in News

Managing Healthy Growth

Bluebytes | Oct 21, 2010

If India Inc does not practice professional project management then the cost of delays would be close to US$100 billion, writes Raj Kalady

India has been on a growth path for the past two decades and is poised to take an even larger slice of the world economy pie. The Eleventh 5 Year Plan foresees a requirement of over US$ 500 billion investment in infrastructure projects in the next five years, and this includes capacity expansion in the manufac­turing sector. This is more good news for an economy that has challenged and strongly withstood the slowdown. The Indian manufacturing sector has strived, and largely succeeded, in rais­ing productivity levels and adopting best practices across the value chain. This has resulted in Indian companies swiftly crossing one milestone after another at a time when western majors are trying hard to stage a revival. This is indeed to be applauded.

However, on the other hand, as per the flash report from the Ministry of Statistics and Programme Implementation.
(MOSPI), project cost overrun is a high over 17% of the project estimate. If India Inc. does not practice professional proj­ect management the cost of delays would be close to US$ 100 billion, an amount the country can ill afford to waste. On the other hand, there are a number of projects in India which have been completed on time and within budget, the Delhi Metro being one such example.

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