A Study of Risk Perceptions in Development of Power Projects in India 

Abstract

Infrastructure, both physical and digital, has been key growth drivers of the economy. They are not only capital intensive but also fraught with numerous uncertainties and risks. The requirement of power is the primary building block of any infrastructure development. Taking cognizance of the numerous stranded power projects in the country there is a vital requirement to establish an effective risk management in power projects. 

A research work was undertaken with a view to study the critical risks which have an impact on the power projects and thermal power plants in particular. The expert views of the power plant professionals were utilized to arrive at the list of risks and suitable mitigation measures against the risks were formulated. It is observed that, numerous power plants have failed owing to lack of mitigation measures deployment during design and implementation stage.

A comprehensive list of 67 risks was prepared and grouped under design, construction, financial, legal, procurement, regulatory and safety risks. Along with the risks, suitable mitigation measures were also prepared. The respondents were asked to rate the risks along the lines of probability and its impact using online questionnaire. Likewise, the respondents were asked to rank the risk mitigation action. An option to identify additional risks and mitigation actions from their experience was also given to the respondents. Analysis was carried out to identify whether there are any differences in the perceptions of the risk potential of the critical risk factors and the importance of risk mitigation measures amongst the different groups power sector professionals. Taking into view of extensive research carried out under the study, the results would serve as a useful guide with its list of risks and the mitigation measures.