Infrastructure project costs rise by Rs 3.22 lakh crore, government report shows AI generated image for representation only
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Infrastructure project costs rise by Rs 3.22 lakh crore, government report shows

September report does not disclose how many projects exceeded their original budgets

PSU Watch Bureau

New Delhi: The combined cost of 1,853 ongoing central infrastructure projects has risen by approximately Rs 3.22 lakh crore over their original estimates, according to a government monitoring report for September 2026. The report, however, does not specify how many projects account for the escalation.

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The projects, each worth more than Rs 150 crore and spread across 17 central ministries and departments, now have a total revised cost of Rs 37,55,803 crore, against the original estimate of Rs 34,33,827 crore. This represents an increase of about 9.38 percent.

Expenditure reaches Rs 17.73 lakh crore

Cumulative expenditure stood at Rs 17.73 lakh crore, or 47.21 percent of the revised project cost. While this measures spending against the overall budget, it does not establish whether projects are progressing according to their original schedules.

Of the projects monitored, 654, or about 35 percent, had achieved more than 80 percent physical progress. However, only 338 projects, or around 18 percent, had crossed 80 percent financial completion.

The report noted that projects were concentrated at both the initial and advanced stages, reflecting a mix of newly started works and projects nearing completion. Physical progress was ahead of financial progress in the 81–100 percent completion category, while spending was relatively higher in the early stages, reflecting upfront expenditure.

The portfolio comprises 780 mega projects costing Rs 1,000 crore or more and 1,073 major projects costing less than Rs 1,000 crore.

Transport dominates project pipeline

Transport and logistics accounted for the largest share of the portfolio, with 1,320 ongoing projects costing Rs 20.07 lakh crore.

Among ministries, the Ministry of Road Transport & Highways had the highest number: 974 projects, representing about 53 percent of the total. Their revised cost stood at Rs 9.46 lakh crore, or roughly a quarter of the overall portfolio.

The Ministry of Railways followed with 284 projects costing Rs 7.21 lakh crore. The Ministry of Coal had 121 projects with a revised cost of Rs 2.22 lakh crore.

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Other major portfolios included 115 petroleum and natural gas projects costing Rs 4.30 lakh crore and 106 power projects worth Rs 6.40 lakh crore. Housing and urban affairs accounted for 49 projects costing Rs 3.41 lakh crore, while the Department of Water Resources, River Development & Ganga Rejuvenation had 35 projects worth Rs 1.95 lakh crore.

The remaining 169 projects, with a combined cost of Rs 2.62 lakh crore, were spread across other ministries and departments.

Despite providing an aggregate picture of expenditure and implementation, the report’s omission of the number of projects facing cost overruns leaves unclear whether the escalation is concentrated in a few large projects or spread more widely.

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