A few recent past examples of disastrous mismanagement of public sector projects. taken from different sectors and briefly discussed here, will help in a better perception of the prevailing situation.
In the Atomic Energy Sector, the Narora Atomic Power Plant of 2 x 235 MW capacity at Bulandshahar in U.P. was approved by the Central Government in January 1974 with an estimated total cost of Rs. 209.89 crore, and the two units were to be commissioned before March 1982. The project has suffered more than 10 years delay and Rs. 535 crore cost overrun. It was a case of failure on the part of the owner and/or executing authority to do timely planning and integrated team management of all agencies involved.
In the Coal Sector the Moodily Underground Project of 2.l-million tomes/year capacity was seven years oi schedule and seventeen years of oven, raising its cost from Rs. 15.49 crore to Rs. 158.38 crore. This record-breaking classic example of project failure is attributable to indecision lack of coordinated efforts which led to delay in finalizing technology and equipment. with continued changes in the scope of the project. delay in the supply of long face equipment.
In Steel, the colossal overruns experienced by Vizag Steel Project with a time overrun of 56 months and cost overarm of Rs. 6,093 crore are the result of wrong estimates, bad fund flow, inordinate delay in civil work and equipment supplies by public sector enterprise, and failure on the part of the State Government to provide water on time. The root causes of all this failure is the consultant's inadequate exercises at the formulation stage, insufficient funding arr,effulgent, and undeserved protection to the public sectors vendors ,and contractors.
The four million tonne expansion projects of both Bokaro and Blackmail have overfull by 8 years and 7 years respectively, with cost overruns of Rs. 1,25 1 and Rh. 1.350 crore, respectively, their percentages briny 132 and 144. In fact, simultaneously. Bokaio Steel's captive power plant work had also overrun and wasted over Rs. 80 crore additionally. Nal-lreezing of specifications, "go Sheila" clearance without a final plan. in supplier, delayed dispatches by USSR and Poland ,and failure by public sector constructional collaborators are man hectors responsible for his.
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