1. Message from
Raj Kalady
Country Head : PMI India

2. Dear Practitioners,
Greetings to all!
It gives me great pleasure that the PMI Chennai Chapter has come forward to promote
an Engineering & Construction forum as a part of their out reach activities .
This Forum could not have arrived at a better time. The 12th five year plan intends to double
the infrastructure spending to USD 1 trillion through 2012-17 with 50 percent of the funding
to be met by private sector. With Project delays and cost overruns, afflicting this industry,
this forum will serve as a platform to discuss industry challenges with respect to Project
Management, share best practices and more importantly serve as a catalyst to promote
industry academia linkage.
I wish the forum all success and hope that this movement will help the industry to improve
their Project Management capabilities and thereby meet their business objectives.
Thank you!

3. 3© 2013 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International
Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
60 256
0
50
100
150
200
250
300
FY07 FY17
USDbillion
The investment in infrastructure sector is expected to be more than 10
percent of GDP by 2017
Note: All figures in USD Billions Source: Planning Commission
5% of
GDP
+15% pa CAGR
Investments in Infrastructure
0
200
400
600
800
1000
1200
Xth Xith XIIth
USDbillion
Electricity Roads and bridges
Railways Irrigation
Water supply Ports
Airports Telecom
Others
Planned Infrastructure Investments
(USD Billion)
1,025
514
227
10.7% of
GDP
1,18,537 MW to be
added in 12th plan
1 billion tonnes of new
capacity to be added in 12th
plan
1,000 Km of new
expressway to be constructed
in 12th plan
5.19 lakh crore to be
spent on railways in 12th plan

4. 4© 2013 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International
Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
Although the sector is considered to be key driver of economic growth, time
and cost overruns threaten to limit the sector’s potential…
58%
53%
41%
33%
30%
28%
46%
Roads & highways
Power
Coal
Civil Aviation
Shipping & ports
Railways
Overall
Time overrun
Overall project
costs (planned
versus
anticipated) have
risen by 18
percent across
various sectors
Railways — INR8600
billion rise in budget
Power — INR160
billion increase in
budget
Petroleum —
INR110 billion
increase in budget
Steel — INR60 billion
increase in budget
Urban dev — INR50
billion increase in
budget
Atomic energy —
INR60 billion increase
in budget
141%
119%
63%
15%
12%
11%
18%
Railways
Water resources
Petrochemical
Atomic energy
Urban…
Civil Aviation
Overall
Cost overrun
Sector wise percentage of projects with time and cost overruns

5. 5© 2013 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International
Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
.. resulted due to multiple reasons across the project lifecycle
Conceptualization/
Pre-Planning
Planning and Design
Execution and
Monitoring
Closure/Handover
Reasons for Delay across the Project Lifecycle
Source: KPMG Analysis
Post-Construction Phase
Delay in regulatory
approvals
Unavailability/delayed
availability of funds
Delay Land/site handover
Lack of strong R&R
policies
Ineffective procurement
planning
Design/scope change
Weak/ineffective project
planning & monitoring
Contractual disputes
Delay in decision making
Pre-commissioning
teething troubles
Contractual disputes
Unavailability/delayed
availability of funds
Lack of strong R&R
policies
Delay in regulatory
approvals
Delay in decision making
Coordination issues
Lack of Skilled Manpower
Lack of Skilled Manpower
Lack of Skilled Manpower
Lack of Skilled Manpower
Pre-Construction Phase

6. How important is the Project Management Skill?
Quality of Project Managers has the highest influence of all the factors!
Source: PMI-KPMG Study on drivers for success in Infra Projects

7. PMI FICCI Report 2010 – PM in India
Insights in 6 key sectors
 IT-ITES and Automobile sector have a
high level of adoption and performance.
 Infrastructure sector is the highest
contributor to Gross Domestic Production
(GDP) among the six sectors studied;
however, project management practices
are yet to realize benefits in this sector.
 Defence is an investment sector from a
national perspective, resulting in capital
expenditure of about 3% of the GDP.

8. Planning Commission acknowledged the need of
Project Management in its Approach Paper to
the 12th Five year plan
“Implementation in many areas, particularly in infrastructure development,
involving large projects, is held up for a variety of reasons. Coordination
needed across different agencies to facilitate 12 Approach to the Twelfth
Five Year Plan progress in project implementation is often lacking and can
lead to long delays and cost over-runs. ‘Project management’ capabilities
must be improved for the country to get better returns from public
investment in infrastructure and also in the social sectors’. Project
management, with a view to deliver on time and within cost, is a learnable
capability that can be institutionalised, as demonstrated by the
development experiences of Japan, Korea, Singapore and China. A nation-
wide drive to improve project management must be an integral part of
the Twelfth Five Year Plan.
Further in the 12th Plan PM is the key in the India Backbone implementation Network

9. Thank you!