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Central infrastructure projects see INR 5.42 lakh crore cost escalation, transport sector dominates pipeline

#Infrastructure News#Infrastructure#India
Last Updated : 2nd Feb, 2026
Synopsis

Infrastructure projects with an individual value of over INR 150 crore have collectively recorded cost overruns amounting to INR 5.42 lakh crore, according to a government monitoring report released earlier this week. The revised cost of 1,392 ongoing central sector projects has risen to INR 35.10 lakh crore, compared to their original estimated outlay of INR 29.68 lakh crore. Data published by the Ministry of Statistics and Programme Implementation (MoSPI) shows that more than half of the revised project cost has already been incurred, indicating significant progress despite cost pressures. The transport and logistics segment accounts for the largest share of projects and investment value, highlighting continued policy emphasis on connectivity-led infrastructure expansion. The findings are based on disclosures made through the newly launched PAIMANA digital monitoring portal.

A significant number of large central sector infrastructure projects are facing substantial cost escalations, with cumulative overruns amounting to INR 5.42 lakh crore, as per the latest government data for December 2025. The findings were outlined in the Flash Report on Central Sector Infrastructure Projects, which tracks projects valued at INR 150 crore and above.


According to the Ministry of Statistics and Programme Implementation, the revised cost of 1,392 ongoing projects currently stands at INR 35.10 lakh crore, compared with their original sanctioned cost of INR 29.68 lakh crore. While the report did not disclose the exact number of projects affected by cost overruns, the aggregate figures indicate widespread revisions across the monitored portfolio.

As of December 2025, cumulative expenditure on these projects had reached INR 19.01 lakh crore, representing approximately 54.1 per cent of the revised project cost. Physical and financial progress indicators suggest that a sizeable portion of projects is nearing completion. MoSPI data shows that 469 projects, or around 33 per cent of the total, have achieved more than 80 per cent physical progress, while 221 projects, accounting for 16 per cent, have crossed the same threshold in terms of financial completion.

Sectoral analysis reveals that transport and logistics continues to dominate the infrastructure pipeline. This segment accounts for 896 ongoing projects with revised cost estimates of INR 17.70 lakh crore, underscoring the government's sustained focus on road, rail and connectivity-driven development.

Of the total projects under implementation, 585 are categorised as mega projects with individual values exceeding INR 1,000 crore, collectively carrying a revised cost of INR 31.44 lakh crore. The remaining 807 projects fall under the major category, with project values ranging between INR 150 crore and INR 1,000 crore, and a combined revised cost of INR 3.66 lakh crore.

MoSPI has recently operationalised the PAIMANA portal short for Project Assessment, Infrastructure Monitoring and Analytics for Nation-building to enhance digital monitoring of central sector projects. The platform replaces the earlier OCMS-2006 system and has been integrated with DPIIT's Integrated Project Monitoring Portal. This integration has reduced manual data entry, with around 60 per cent of project data now being updated automatically, improving oversight and data consistency across ministries.

Source - PTI

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