Skill Crunch Bogs Down $26 Billion Infrastructure Projects in India

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Researched by Industrial Info Resources India (Delhi, India)--Sluggish land acquisition process, tardy regulatory approvals are not the only challenges being faced by the big ticket infrastructure projects. Such external factors only brush away the attention in such a manner that we often overlook the internal factors, which are quite controllable in nature, adversely impacting the timeline of the projects.

A recent study has highlighted that acute shortage of skilled manpower is severely hurting timely execution of major infrastructure projects in India. The impact is far bigger than its underestimated potential. This has resulted in cost over-runs to the tune of $26-Billion in a spread of 551 odd infrastructure projects in the country.

Keeping the planned target for infrastructure projects in picture, India needs more than 400,000 qualified new project professionals every year at least till 2022. The country needs professionals in all genres of roles and functions ranging from surveyors, planners, safety and also blue-collared semi skilled and unskilled workforce. According to a recent study conducted by the Associated Chambers of Commerce and Industry of India (ASSOCHAM) (New Delhi), India is currently facing paucity of over 1 million project management professionals each year.

Most of the large-sized infrastructure projects such as Highways, Power, Energy, Transmission, Pipeline and others involving greater interdependence and increased regulatory compliance are in limbo as they require coordination among multiple vendors and optimized allocation of resources which call for qualified professionals possessing superior project management skills. The biggest roadblock to this is the unabated outflow of relevant human resource to sectors like Information Technology and Finance. Professional possessing specialized Technical and Engineering skills are drawn more towards these money-spinning career options leading to an acute shortage of skilled manpower in infra projects that demand intense technical maneuver.

More than 80% of the infrastructure projects irrespective of the size and domain have been beset owing to the wrath of this crunch running way behind their schedule. Some of the projects have been stuck for over a decade and proving to be a drag to the economy.

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