🇮🇳India

लागत अतिदान (Cost Overrun)

2 verified sources

Definition

Manual EVMS reporting in fragmented systems causes poor visibility into cost/schedule variances, leading to resource inefficiency, scope creep, and supplier delays in capital-intensive defense projects.

Key Findings

  • Financial Impact: ₹10-50 crore per major contract in overruns due to undetected variances; 2-5% of project budget lost to manual delays (typical for ₹50-500 crore revenue firms)
  • Frequency: Per project cycle (long-term contracts spanning years)
  • Root Cause: Lack of integrated EVM systems causing data latency and fragmented tracking

Why This Matters

The Pitch: Defense and Space players in India waste ₹50-500 crore annually on EVMS manual tracking. Automation of earned value metrics eliminates overruns and ensures real-time compliance.

Affected Stakeholders

Project Managers, Finance Controllers, Cost Accountants

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Financial Impact

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Current Workarounds

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Methodology & Sources

Data collected via OSINT from regulatory filings, industry audits, and verified case studies.

Evidence Sources:

Related Business Risks

अनुपालन दंड (Compliance Penalties)

₹1-5 lakh per audit finding; up to 10% contract value in penalties for EVMS failures (logic: min statutory under DAP; typical 2-5% loss)

क्षमता हानि (Capacity Loss)

20-40 hours/month per project at ₹2,000/hour engineer rate (₹40,000-80,000/month loss); 15-25% EBITDA erosion for ₹50-500 crore firms

परिवर्तन नियंत्रण में देरी से लागत वृद्धि

₹250 crores funding cap exceeded by overruns; 20-30% project delays adding 15-25% to costs

बदलाव प्रबंधन में खाली क्षमता हानि

15-25% capacity loss; months of idle equipment per delayed program

परिवर्तन दृश्यता की कमी से निर्णय त्रुटियाँ

10-20% cost escalation from bad decisions; 6-12 months decision delays

निर्माण लागत निर्धारण त्रुटियाँ

₹10-50 lakhs per audit adjustment for misallocated overheads (2-5% of project costs); 20-40 hours/month manual reconciliation

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