Impact of Project Risk Management and Financial Stability on Project Success in The Indian Power Sector

Purpose: It is against this backdrop that the current paper explores the relationship that exists between project risk management (PRM), financial stability (FS) and project success (PS) in the context of high capital intensity, intensive regulatory scrutiny and widespread schedule and cost overruns in the Indian power sector. The study is by uniting the constructs in this way is contributing to the existing literature by simultaneously developing a single framework that does not put PRM and FS variables as discrete variables but rather as joint determinants of project performance. It also evaluates how much external factors such as regulatory environment, use of technology and macro-economic factors have on these internal forces. Design / Methodology / Approach: The study is based on quantitative data that was gathered on 338 respondents with project-management, financial-analysis, and regulatory, being the sub-sectors. A well-organized tool was distributed in the form of a 7-point Likert scale to measure the perception of respondents of PRM and FS as well as associated variants. Partial Least Squares Structural Equation Modeling (PLS-SEM) used in SmartPLS 4.0 confirmed the measurement model and), at the same time, tested hypotheses. A PLS-SEM path diagram that was the main analytical instrument included a variety of predictors to study their direct and indirect influence on PRM, FS, and project success. Findings: Show that both PRM and FS has great, positive impacts on PS. Funding shape, risk components, and economic influence were realized as major determinants of PRM and FS. It is noted that regulatory environment did not show a discernable correlation with Project Risk Management (PRM) but showed a favorable impact on Financial Sustainability (FS); technology showed a close correlation to FS. Overall, this study highlights the mediating roles of PRM and FS and provides evidence for the practical importance of these mediators in explaining the relationship between external forces and project outcomes. The emergence of empirical evidence based on the paradigm of integrated risk-financial planning can be seen, the paradigm that can reduce delays and augment implementation as well as raise confidence among stakeholders. Originality: the work provides a brand new, empirically supported framework to view PRM and FS as two mediators between external contingencies and project success. It also explains the boundary conditions of regulatory and technological aspects in the context of an Indian infrastructure, which can be considered a theoretical addition to already established views on the international level. Useful implications of the research, practical means that policymakers, investors and project managers can take necessary steps to enhance financial arrangements, improve the protocols of risk-management and ensure that technology investments proceed in tandem with the requirements of the project.