Infrastructure Projects Face ₹3.4 Lakh Crore Cost Overrun: MoSPI

Infrastructure Projects Face ₹3.4 Lakh Crore Cost Overrun: MoSPI
Infrastructure Projects Face ₹3.4 Lakh Crore Cost Overrun: MoSPI

Infrastructure projects worth more than ₹150 crore each have recorded a cumulative cost overrun of around ₹3,40,504 crore, according to the latest monthly report of the Ministry of Statistics and Programme Implementation (MoSPI) for July 2026. The report covers 1,775 ongoing infrastructure projects being monitored across 17 Central Ministries and Departments.

The total original cost of these projects was estimated at ₹33,70,138 crore, while their revised cost has increased to ₹37,10,642 crore, representing the cumulative increase in project costs. MoSPI, however, did not specify the exact number of individual projects that have faced cost overruns.

Cumulative expenditure on the projects stood at ₹19.26 lakh crore, equivalent to around 51.91 per cent of the revised project cost. The data also indicates that a substantial share of projects is progressing towards completion, with 675 projects, or 38 per cent, achieving more than 80 per cent physical progress. Another 305 projects, or 17 per cent, have crossed 80 per cent financial completion.

The Transport and Logistics sector accounts for the largest share of the infrastructure pipeline, comprising 1,246 projects, or around 70 per cent of the total. Their revised cost stands at ₹19.81 lakh crore, representing 53 per cent of the overall revised project cost. The sector includes roads and highways, railways, aviation, urban public transport, shipping and inland waterways.

The Energy sector is the second-largest segment, with 205 projects carrying a combined revised cost of ₹10.66 lakh crore, or 29 per cent of the total. These projects cover areas including oil and gas infrastructure, power generation, transmission and distribution networks and energy storage systems.

Among individual ministries, the Ministry of Road Transport and Highways has the highest number of projects under monitoring, with 993 projects and a revised cost of ₹9.62 lakh crore. The Ministry of Railways follows with 190 projects valued at ₹6.38 lakh crore, while the Ministry of Coal is implementing 121 projects with a revised cost of ₹2.22 lakh crore.

The monitored portfolio comprises 735 mega projects, each costing ₹1,000 crore or more, with an original aggregate cost of ₹28.77 lakh crore. The remaining 1,040 major projects fall in the ₹150 crore to below ₹1,000 crore category and had an original combined cost of ₹4.93 lakh crore.

The government data also shows that projects are spread across different stages of implementation, with a significant concentration at both the initial 0–20 per cent stage and the advanced 81–100 per cent stage. This indicates a pipeline containing both recently initiated projects and a sizeable number approaching completion.

The latest figures highlight both the scale of India’s ongoing infrastructure investment and the financial pressure created by rising project costs. At the same time, the high proportion of projects showing substantial physical and financial progress indicates continued implementation across the country’s major infrastructure sectors.

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