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A government report released recently showed that 1,847 central infrastructure projects, each valued above INR 150 crore, have recorded a cumulative cost overrun of around INR 4.93 lakh crore. The revised project cost has increased to INR 40.54 lakh crore from the original estimate of INR 35.62 lakh crore. While the report did not specify how many projects experienced cost escalation, it highlighted that more than half of the revised project cost has already been spent, with a large number of projects nearing completion. Transport and logistics continue to dominate the country's infrastructure pipeline.
Infrastructure projects worth more than INR 150 crore each have recorded a cumulative cost overrun of around INR 4.93 lakh crore, according to the Ministry of Statistics and Programme Implementation's (MoSPI) monthly infrastructure monitoring report for June 2026.
The report monitored 1,847 ongoing infrastructure projects being implemented across 17 Central Ministries and Departments. Together, these projects have a revised cost of INR 40.54 lakh crore compared to the original approved cost of INR 35.62 lakh crore, reflecting an overall increase of nearly INR 4.93 lakh crore. However, the report did not disclose the exact number of projects that experienced cost overruns.
The ministry stated that cumulative expenditure on these projects has reached INR 21.97 lakh crore, representing around 54.18% of the revised project cost. This indicates that implementation work is progressing steadily across a large portion of the monitored projects.
A considerable number of projects have already reached advanced stages of execution. According to the report, 709 projects, accounting for nearly 39% of the total, have achieved more than 80% physical progress. Meanwhile, 337 projects, or about 19%, have crossed the 80% mark in terms of financial progress.
The report also pointed to a balanced project pipeline, with infrastructure works spread across both early and advanced phases of implementation. It noted that while many projects have recently entered execution, a significant number are also approaching completion.
Among all sectors, Transport and Logistics continues to account for the largest share of ongoing infrastructure activity. The sector has 1,341 projects with a combined revised cost of INR 22.32 lakh crore, highlighting the government's continued focus on improving national connectivity through roads, railways, aviation, shipping and inland waterways.
Of the 1,847 projects under monitoring, 769 are classified as mega projects with individual project costs of INR 1,000 crore and above. These projects had an original sanctioned cost of INR 30.51 lakh crore. The remaining 1,078 projects fall under the major projects category, with costs ranging from above INR 150 crore to below INR 1,000 crore, carrying a combined original cost of INR 5.10 lakh crore.
The report further noted that physical and financial progress are broadly moving together. A large number of projects are concentrated in both the 0-20% and 81-100% completion brackets, suggesting a healthy mix of newly launched projects and projects nearing completion. It also observed that financial progress tends to be higher during the initial stages due to upfront spending, while physical progress overtakes financial progress as projects move closer to completion.
Among ministries, the Ministry of Road Transport and Highways is implementing the highest number of projects with 1,022 projects, accounting for 55% of the total monitored projects. These projects have a revised cost of INR 9.89 lakh crore, representing nearly 24% of the total revised project cost.
The Ministry of Railways is overseeing 255 projects with a revised cost of INR 8.69 lakh crore, while the Ministry of Coal is implementing 121 projects worth INR 2.22 lakh crore.
Other key ministries also have substantial infrastructure portfolios. The Ministry of Petroleum and Natural Gas is executing 105 projects with a revised cost of INR 4.33 lakh crore. The Ministry of Power has 98 projects worth INR 5.71 lakh crore, while the Ministry of Housing and Urban Affairs is implementing 50 projects valued at INR 3.65 lakh crore. The Department of Water Resources, River Development and Ganga Rejuvenation is handling 40 projects with a revised cost of INR 2.04 lakh crore.
The remaining 156 projects, accounting for around 8% of the total, have a combined revised cost of INR 4.02 lakh crore. These projects are spread across ministries and departments including Higher Education, Civil Aviation, Steel, Telecommunications, Labour and Employment, Ports, Shipping and Waterways, Health and Family Welfare, Mines, the Department for Promotion of Industry and Internal Trade (DPIIT), and Sports.
Sector-wise, Transport and Logistics remains the largest infrastructure segment, accounting for 55% of the total revised project cost at INR 22.32 lakh crore across 1,341 projects. The report noted that investments in roads, highways, railways, aviation, urban public transport, ports, shipping and inland waterways continue to play a key role in strengthening economic integration and improving logistics efficiency.
The Energy sector ranks second with 207 projects carrying a revised cost of INR 10.38 lakh crore, accounting for 26% of the overall project value. These projects cover oil and gas infrastructure, power generation, transmission and distribution networks, as well as energy storage systems.
Communication infrastructure includes 15 projects with a revised cost of INR 2.64 lakh crore, reflecting investments aimed at expanding digital connectivity. Water and Sanitation projects account for 56 projects worth INR 2.08 lakh crore, indicating continued investment in essential public infrastructure.
The report also showed that Social and Commercial Infrastructure comprises 88 projects with a revised cost of INR 0.94 lakh crore. These include investments in education, healthcare, real estate, tourism, hospitality and wellness. Another 140 projects grouped under the 'Others' category, with a revised cost of INR 2.18 lakh crore, cover sectors such as coal, steel, metals and mining.
Source PTI