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Central infrastructure projects in India, each valued at over INR 150 crore, have faced cumulative cost overruns of INR 5.66 lakh crore, raising the total revised project cost to INR 41.98 lakh crore. The 1,948 ongoing projects, monitored across 17 ministries, have spent INR 19.71 lakh crore so far, with many projects in advanced stages. Transport and Logistics dominate the project landscape, followed by energy, communication, water, and social infrastructure. Several major projects were commissioned recently, and 268 additional projects were brought under monitoring, reflecting continued government focus on connectivity and essential services.
A recent government report shows that several central infrastructure projects, each worth over INR 150 crore, have collectively exceeded their original budgets by INR 5.66 lakh crore. The latest Flash Report on Central Sector Infrastructure Projects indicates that the revised total cost of all 1,948 monitored projects now stands at INR 41.98 lakh crore, compared to the original estimated cost of INR 36.32 lakh crore. The report, however, did not specify exactly how many projects are facing cost overruns. Advertisement
The Ministry of Statistics and Programme Implementation (MoSPI) highlighted that these 1,948 ongoing projects, spread across 17 central ministries and departments, have incurred cumulative expenditure of INR 19.71 lakh crore, which is roughly 46.95 per cent of the revised costs. This suggests steady progress in implementation.
Around 740 projects (38 per cent) have achieved over 80 per cent physical progress, while 250 projects (13 per cent) have crossed 80 per cent financial completion, indicating a healthy mix of early-stage and advanced-stage projects. Physical and financial progress largely align, with many projects in initial (0-20 per cent) and advanced (81-100 per cent) stages. Notably, physical progress exceeds financial progress in the advanced range, whereas early-stage projects show relatively higher financial spending, reflecting upfront investment patterns.
The Transport and Logistics sector leads with 1,421 ongoing projects, having revised costs of INR 22.96 lakh crore, highlighting the government's focus on connectivity-driven infrastructure. The Ministry of Road Transport & Highways alone manages 1,108 projects (56.88 per cent of total), with a total cost of INR 10.51 lakh crore. The Ministry of Railways follows with 245 projects, holding the largest share of total project costs at INR 8.39 lakh crore. Other key ministries include Coal (128 projects, INR 2.4 lakh crore), Petroleum & Natural Gas (113 projects, INR 5.15 lakh crore), Power (101 projects, INR 5.25 lakh crore), Housing & Urban Affairs (55 projects, INR 3.95 lakh crore), and Water Resources, River Development & GR (49 projects, INR 2.25 lakh crore). The remaining 149 projects, costing INR 3.98 lakh crore, are spread across ministries such as Higher Education, Civil Aviation, Steel, Telecommunications, Labour & Employment, Ports, Shipping & Waterways, Health & Family Welfare, Mines, DPIIT, and Sports.
Among all sectors, Transport and Logistics dominate with 55 per cent of the total revised cost, followed by energy projects accounting for 26 per cent across 220 projects, reflecting focus on oil, gas, electricity, and energy infrastructure. Communication infrastructure is limited but strategic, with 14 projects worth INR 2.74 lakh crore aimed at strengthening digital connectivity. Water and sanitation projects total INR 2.31 lakh crore across 71 projects, emphasizing essential urban services. Social and commercial infrastructure, including education, healthcare, and tourism-related projects, accounts for 74 projects worth INR 0.79 lakh crore. The Others category, encompassing sectors like coal, steel, metals, and mining, represents 148 projects with a total cost of INR 2.22 lakh crore.
In February, nine projects were commissioned, including significant assets in railways and petroleum & natural gas, such as the Trivandrum Kanyakumari project (INR 3,785.45 crore) and the PP Project, Pata (INR 1,299.02 crore). The monitoring framework was expanded to include 268 additional projects, mostly under the Ministry of Road Transport & Highways, along with a few under Petroleum & Natural Gas, Water Resources, and Coal ministries. Key additions include the PRFCC Unit at Mumbai Refinery (INR 13,626 crore) and the Ken-Betwa Linking Development Project (INR 21,030 crore).
Overall, while cost overruns are a concern, the pace of execution and commissioning of major projects shows that India's infrastructure development continues to advance steadily, with emphasis on connectivity, energy, and essential services.
Source PTI
FAQ
Q1: How much are the cumulative cost overruns in central infrastructure projects?
Central infrastructure projects in India, each valued at over INR 150 crore, have faced cumulative cost overruns of INR 5.66 lakh crore, raising the total revised cost of 1,948 ongoing projects to INR 41.98 lakh crore.
Q2: How much progress has been made on these projects so far?
The 1,948 projects have spent INR 19.71 lakh crore, roughly 47 per cent of the revised costs. Around 740 projects (38 per cent) have achieved over 80 per cent physical progress, and 250 projects (13 per cent) have crossed 80 per cent financial completion, showing a mix of early-stage and advanced-stage projects.
Q3: Which sector has the largest share of ongoing projects and costs?
Transport and Logistics dominate the infrastructure landscape with 1,421 projects, accounting for INR 22.96 lakh crore, or 55 per cent of the total revised cost. The Ministry of Road Transport & Highways alone manages 1,108 projects (56.88 per cent of total), while the Ministry of Railways oversees 245 projects with INR 8.39 lakh crore in costs.
Q4: What other sectors are contributing to infrastructure development?
Energy projects, including oil, gas, and electricity, cover 220 projects with 26 per cent of total costs. Water and sanitation projects involve 71 projects worth INR 2.31 lakh crore. Communication, social, and commercial infrastructure sectors include 14, 74, and 148 projects, respectively, supporting digital connectivity, education, healthcare, tourism, and industrial development.
Q5: Have any major projects been commissioned recently?
Yes, in February, nine projects were commissioned. Notable ones include the Trivandrum Kanyakumari railway project (INR 3,785.45 crore) and the PP Project, Pata (INR 1,299.02 crore). The government also added 268 projects to the monitoring framework, including the PRFCC Unit at Mumbai Refinery (INR 13,626 crore) and the Ken-Betwa Linking Development Project (INR 21,030 crore).
Q6: What are the main challenges identified in infrastructure projects?
Cost overruns remain a concern, primarily due to underestimated project costs, delays, and execution challenges. Some projects show financial spending ahead of physical progress in early stages, while advanced-stage projects sometimes have slower fund utilisation.
Q7: What is the overall outlook for India's infrastructure development?
Despite cost overruns, project execution continues steadily, with a focus on enhancing connectivity, energy infrastructure, and essential services. Many projects are in advanced stages, and the government continues to monitor and expand project coverage to drive national development priorities.
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