Identifying the Variables Influencing Project Cost Overrun for Establishing Steel Plants in India

Abstract

The steel industry is the one which plays an important role in infrastructural development of any country. It is said to be helpful in 'building nations' especially developing countries like India.

The Indian steel industry anticipates a sufficiently good growth rate in the present five year plan. The last two decades in India have witnessed a boom in the 'development sector' worldwide. especially in developing countries that are rich in natural resources. This has pressurized the governments to develop large scale projects.

There are various risks associated with the phases of construction and establishment of a project which are unique and vary from one project to other.

This paper uses exploratory research methodology to understand and identify the risk variables associated with construction of steel plants in India. The variables identified by immense literature review have been reduced using a questionnaire method which was administered to 30 top level executives of various companies and project management consultancies dealing in establishment of steel plants in India. The finally arrived list of variables is the outcome of this paper which will be utilized for further research.

Keywords: project management, project risk management, risk management, steel industry

JEL Classification: D81, H54, L61, N65, O22