Government Report Shows Significant Cost Increases in Central Sector Infra Projects

Government Report Shows Significant Cost Increases in Central Sector Infra Projects.webp

New Delhi, Feb 25 – Several infrastructure projects worth over ₹150 crore each have experienced a cumulative cost overrun of ₹5.52 lakh crore, according to a monthly government report for January 2026.

The latest "Flash Report on Central Sector Infrastructure Projects" showed that the revised cost of all 1,702 projects, each valued at ₹150 crore or higher, monitored by the Ministry of Statistics, stood at ₹39,24,534 crore compared to their original cost of ₹33,71,816 crore.

The report did not specify the exact number of projects facing cost overruns.

The Ministry of Statistics and Programme Implementation (MoSPI) stated in a press release on Wednesday that, as of January this year, 1,702 ongoing infrastructure projects, with a revised cost of ₹39.25 lakh crore, are reported on the PAIMANA portal across 17 central ministries/departments.

During the month, three projects were commissioned, and 203 additional projects were brought under the monitoring of PAIMANA.

The cumulative expenditure incurred on these projects up to January 2026 stands at ₹20.02 lakh crore, which accounts for approximately 51.01 per cent of the revised project cost.

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

The transport & logistics sector accounts for the highest number of ongoing projects at 1,180, with revised estimates of ₹20.65 lakh crore, highlighting the priority given to connectivity-driven infrastructure growth.

The total ongoing projects include 695 mega projects (costing ₹1,000 crore and above) with a revised cost of ₹29 lakh crore, and 1,007 major projects (worth below ₹1,000 crore and up to ₹150 crore) amounting to ₹4.72 lakh crore.

As of January 2026, the cumulative expenditure incurred on these 1,702 under implementation projects stands at ₹20.02 lakh crore, accounting for approximately 51.01 per cent of the revised project cost.

Out of the total 1,702 projects, 645 (38 per cent) have achieved over 80 per cent progress, while 240 (14 per cent) have crossed 80 per cent completion, reflecting that a significant portion of projects are at advanced stages of implementation.

The Ministry of Road Transport & Highways accounts for the highest number of 863 projects (50 per cent), with a 20 per cent share of the total project cost at ₹8.1 lakh crore.

The Ministry of Railways is implementing 249 projects (15 per cent), and has the largest share of the total project cost at ₹8.5 lakh crore (22 per cent).

The Ministry of Coal accounts for implementing 126 projects (7 per cent), with a total project cost of ₹2.14 lakh crore (6 per cent).

The Ministry of Petroleum & Natural Gas, the Ministry of Power, the Ministry of Housing & Urban Affairs, and the Department of Water Resources, River Development & GR are implementing 110, 102, 56, and 47 projects, with associated costs of ₹5.03 lakh crore, ₹5.28 lakh crore, ₹3.96 lakh crore, and ₹1.98 lakh crore, respectively.

The remaining 149 projects (9 per cent), with a total cost of ₹3.98 lakh crore (10 per cent), 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.

Sector-wise data showed that the transport & logistics related projects account for 53 of the total revised cost at ₹20.65 lakh crore across 1,180 projects.

The energy sector follows with 28 per cent of the aggregated revised cost (₹10.84 lakh crore) across 218 projects.

Communication infrastructure, with a project cost of ₹2.74 lakh crore (7 per cent) across 14 projects, represents targeted interventions aimed at strengthening digital connectivity.

Water and sanitation projects account for ₹2.03 lakh crore (5 per cent) across 70 projects.

Social and commercial infrastructure, comprising 74 projects with a revised project cost of ₹0.79 lakh crore (2 per cent), reflects selective investments in education, healthcare, real estate, and tourism, hospitality and wellness.

Projects classified under "others", amounting to ₹2.18 lakh crore (5 per cent) across 146 projects, indicate diversification across sectors such as coal, steel, metals, and mining.

During January 2026, three projects were commissioned, including major ones in railway, power and petroleum & natural gas.

Notable commissioned projects include the third railway line of 291 km between Patratu-Sonnagar worth ₹8,975 crore, and the "transmission scheme for evacuation of 4.5GW RE injection at Khavda PS under Phase II- Part C" worth ₹2,821 crore.
 
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central sector projects construction cost overruns government expenditure india infrastructure investment infrastructure projects ministry of statistics and programme implementation (mospi) paimana portal petroleum & natural gas projects power projects project monitoring railway projects revised project costs transport & logistics
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