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Infrastructure projects see cost overrun of ₹3.4 lakh cr: MoSPI

Infrastructure projects see cost overrun of ₹3.4 lakh cr: MoSPI

Posted on August 25, 2026 By admin


Infrastructure projects worth more than ₹150 crore each recorded a cumulative cost overrun of around ₹3,40,504 crore, according to a monthly government report for July 2026.

A total of 1,775 ongoing infrastructure projects across 17 Central Ministries/ Departments were monitored, and it was found that the total revised cost was ₹37,10,642 crore compared to their original cost of ₹33,70,138 crore.

The report, however, did not specify the actual number of projects that faced cost overrun.

The cumulative expenditure incurred on these projects stands at ₹19.26 lakh crore, accounting for approximately 51.91% of the revised project cost, indicating steady progress in project implementation, a statement by the Ministry of Statistics and Programme Implementation (MoSPI) said.

A significant proportion of projects are at advanced stages, with 675 projects (38%) achieving over 80% physical progress, while 305 (17%) have crossed 80% financial completion.

The data also reflects a balanced pipeline, with projects distributed across early and advanced stages of implementation.

The Transport & Logistics sector accounts for the highest number of ongoing projects (1,246 projects), with revised estimates of Rs 19.81 lakh crore underscoring priority to connectivity-driven infrastructure growth.

1,775 ongoing infrastructure projects include 735 Mega projects (project cost of ₹1,000 crore & above) with an original cost of ₹28.77 lakh crore, and 1,040 Major projects (project cost below ₹1,000 crore and up to ₹150 crore) amounting to ₹4.93 lakh crore.

Physical and financial progress broadly move in tandem, with a large number of projects clustered at the initial (0–20%) and advanced (81–100%) stages, indicating a pipeline of newly started projects alongside many nearing completion.

While physical progress exceeds financial progress in the 81–100% range, financial progress is relatively higher in the early stages, reflecting upfront expenditure patterns in project implementation.

Ministry of Road Transport & Highways accounts for the highest number of projects, with 993 projects (56%) and a share of the total revised project cost of ₹9.62 lakh crore (26%), highlighting its central role in national infrastructure development.

Ministry of Railways is implementing 190 projects (11%), with a total revised project cost of ₹6.38 lakh crore (17%).

Ministry of Coal accounts for implementing 121 projects (7%), with a total revised project cost of ₹2.22 lakh crore (6%).

The Ministry of Petroleum & Natural Gas, Ministry of Power, Ministry of Housing & Urban Affairs, and the Department of Water Resources, River Development & GR are implementing 103, 98, 50, and 38 projects, with associated revised costs of ₹4.23 lakh crore, ₹6.08 lakh crore, ₹3.78 lakh crore, and ₹2.01 lakh crore, respectively.

The remaining 182 projects (10%), with a total revised cost of ₹2.78 lakh crore (8%), are distributed across various Ministries/Departments, including Higher Education, Civil Aviation, Steel, Telecommunications, Labour & Employment, Ports, Shipping & Waterways, Health & Family Welfare, Mines, DPIIT, and Sports.

Transport & Logistics remains the dominant sector, accounting for 53% of the total revised project cost (₹19.81 lakh crore) across 1,246 projects (70% of the total projects), underscoring the central role of Roads & Highways, Railways, Aviation, Urban Public Transport, Shipping, and Inland Waterways in economic integration and logistics efficiency.

The Energy sector follows, with 29% of the aggregated revised cost (₹10.66 lakh crore) across 205 projects, reflecting sustained emphasis on Oil & Gas infrastructure, electricity generation, transmission and distribution networks, and energy storage systems.

Communication infrastructure, with a project cost of ₹1.34 lakh crore (4%) across 31 projects, represents targeted interventions aimed at strengthening digital connectivity.

Water & Sanitation projects account for Rs 2.05 lakh crore (5%) across 53 projects, highlighting continued focus on essential urban services.

Social & Commercial infrastructure, comprising 91 projects with a revised project cost of ₹0.99 lakh crore (3%), reflects selective investments in education, healthcare, real estate, and tourism, hospitality and wellness.

Projects classified under ‘Others’, amounting to ₹2.26 lakh crore (6%) across 149 projects, indicate diversification across sectors such as coal, steel, metals, and mining.



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Business Tags:infra cost, infra development, infrastructure budget india, MoSPI

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