Project Management and Cost and Time Overruns

Project management is the most critical factor for economic development of any country. Well conceived and well implemented projects ensure the success of economic planning. India came on the planning mode in 1951 and since then has launched a number of projects both at the central and the state levels. Industrial projects form a key component of the projects stream in India. Over 90% of the industrial projects are in the small and medium sector. The present work deals with the cost and time overruns in medium scale industries promoted by the APIDC a premier corporation set up by the government of Andhra Pradesh in the early 1960's. The present study takes stock of the various projects promoted by the corporation and identifies cognate group wise and each industrial unit wise the extent of time and cost overruns their impact on the financial well being of the projects and the reasons responsible for such time and cost overruns. The approach adopted in completion of the work has been an innovative one in that the researcher studied the case file of each project and then arrived at the conclusions. The present study would be very helpful to policy makers experts in the area of project management financing agencies and researchers who are interested in the area of strengthening project management in India.…