Sluggish markets, debt posing challenges for project management: SCOPE

SCOPE's Director emphasised on the need for skill training as scarcity of trained manpower has pushed up projects costs

Sluggish capital markets and financial debt are emerging as challenges for project management for the country's public sector enterprises, PSUs' apex body SCOPE today said.

It also said critical areas related to project management include allocation of land, faster clearance of forest and environment projects and pre-tie up for raw material, vendors, suppliers and contractors.

"Tightening of the capital market, financial debt and volatility of equity market, has created one of the biggest challenge to Project Management in general," Standing Conference of Public Enterprises (SCOPE) Director General U D Choubey today said in a statement.

He was speaking at a programme on 'Excellence in Project Management'.

Choubey also emphasised on the need for skill training as scarcity of trained manpower has pushed up projects costs.

"There is dearth of sufficient number of engineers, project managers, skilled workers and contractors. As a result of this, the cost of capital for projects is exceeding 12% of the revenue," he added.

Choubey said that there is a need for development of adequate number of skilled workers to cope up with the vacuum which is likely to be created in 5-10 years time when the present lot will be retiring.

As on March 31, 2012, there were 260 CPSEs in the country employing 13.98 lakh people.