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Factors Affecting the Growth of Indian Infrastructure

Infrastructure development, as else where in the world, is done on a project basis in India, too and hence project management assumes significance in this context.
Generally projects are designed with the aim of efficient management earning adequate returns to provide for future development with their own resources. Practice, however, evidences several shortcomings in the ultimate success of achieving the objectives of the proposed projects. It is observed that a number of projects have taken longer time to complete than was initially estimated, benefits from them have been realized later than expected, the capital costs have been larger than originally planned and, consequently, the returns on capital have been smaller than expected when the project was initially approved.

These difficulties are mainly attributed to: -

1. External Causes of Delay:
     * Indian government policies
     * Unscheduled mid-term elections
     * Global recession or unrest, and interference from unexpected quarters
     * Labour unrest
     * Budgetary deficits
     * Technological advancements
     * Social turmoil, like terrorism, communal vandalism etc.

2. Internal Constraints:
     * Poor management practices
     * Incomplete project planning and analysis
     * Inappropriate choice of location/site
     * Lack of skilled manpower and choice of leader (Project Manager)
     * Lack of coordination/cohesion between the team members
     * Poor monitory and control
     * Infrequent monitoring and review amongst members and contractors
     * Vendor delivery problems
     * Monopoly of technology
     * Lack of proper infrastructure of water and electricity, etc.

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* Contributed by: -
N. V. Chakravarthy,
MBA, II Year,
School of Management Studies,
University of Hyderabad, Hyderabad.