The Transformation Of Central Public Works Department

Abstract

The case highlights the strategic leadership given by CPWD Director General Mr.Prabhakar Singh that led to a radical turnaround of the Central Public Works Department (CPWD). It also brings out the fundamental issues that needed to be addressed to improve program and project delivery. When Mr.Prabhakar Singh took over the reins of CPWD as the Director General in July 2018, the organization was gradually losing clients and its order book was shrinking. The time and cost overruns were making customers disenchanted, as a result of which businesses were gradually going to other public sector undertakings such as the NBCC. The government’s Committee of Secretaries recommended that CPWD, in the present form, be wound up and converted to a corporate entity. Mr.Prabhakar Singh started the journey with emphasis on transparency and speed in decision making. CPWD was quick to adopt new technologies and in a span of one-and-half years adopted 50 new emerging and innovative technologies, up from the three new technologies it was using prior to 2018. CPWD also undertook measures to improve its professional expertise through a number of measures. As a result of the transformation, project time and cost overruns went down by nearly 30% to 40%. Led by Mr.Prabhakar Singh, over 1,500 projects were completed and around 3,000 projects were in the pipeline. Projects were being completed before time and at a cost below the estimate. The order book jumped from INR 20,000 crores to more than INR 2,50,000 crores in just 18 months. The department’s turnover rose 20% in FY 2018-19 versus the previous year’s 5-8% increase.