Infrastructure projects see cost overrun of ₹4.92 trillion: Mospi

Infrastructure projects worth above Rs 150 crore each registered a cumulative cost overrun of around Rs 4.92 trillion, according to a monthly government report for June 2026.

A total of 1,847 ongoing infrastructure projects across 17 Central Ministries/ Departments were monitored and it was found that the total revised cost was Rs 40.54 trillion compared to their original cost of Rs 35.61 trillion.

The report, however, did not specify the actual number of projects that faced cost overrun.

The cumulative expenditure incurred on these projects stands at Rs 21.97 trillion, accounting for approximately 54.18 per cent of the revised project cost, indicating steady progress in project implementation, a statement by the Ministry of Statistics and Programme Implementation (MoSPI) said.

A significant proportion of projects are at advanced stages, with 709 projects (39 per cent) achieving over 80 per cent physical progress, while 337 (19 per cent) have crossed 80 per cent financial completion.

The data also showed a balanced pipeline, with projects distributed across early and advanced stages of implementation.

The Transport & Logistics sector accounts for the highest number of ongoing projects (1341 projects), with revised estimates of Rs 22.32 trillion underscoring priority to connectivity-driven infrastructure growth.

The 1,847 ongoing infrastructure projects include 769 Mega projects (project cost of Rs 1,000 crore & above) with an original cost of Rs 30.51 trillion, and 1,078 Major projects (project cost below Rs 1,000 crore and up to Rs 150 crore) amounting to Rs 5.10 trillion.

Physical and financial progress broadly move in tandem, with a large number of projects clustered at the initial (020%) and advanced (81100%) stages, indicating a pipeline of newly-started projects alongside many nearing completion.

While physical progress exceeds financial progress in the 81100 per cent range, financial progress is relatively higher in the early stages, reflecting upfront expenditure patterns in project implementation.

Ministry of Road Transport & Highways accounts for the highest number of projects, with 1022 projects (55%), and a share of total revised project cost of Rs 9.89 trillion (24%), highlighting its central role in national infrastructure development. Ministry of Railways is implementing 255 projects (14%), with a total revised project cost of Rs 8.69 trillion (21%).

Ministry of Coal accounts for implementing 121 projects (7%), with a total revised project cost of Rs 2.22 trillion (6%).

The Ministry of Petroleum & Natural Gas, Ministry of Power, Ministry of Housing & Urban Affairs, and the Department of Water Resources, River Development & GR are implementing 105, 98, 50, and 40 projects, respectively, with associated revised costs of Rs 4.33 trillion, Rs 5.71 trillion, Rs 3.65 trillion, and Rs 2.04 trillion, respectively.

The remaining 156 projects (8%), with a total revised cost of Rs 4.02 trillion (10%), 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.

Transport & Logistics remains the dominant sector, accounting for 55 per cent of total revised project cost (Rs 22.32 trillion) across 1,341 projects (73% of the total Projects), underscoring the central role of Roads & Highways, Railways, Aviation, Urban Public Transport, Shipping, and Inland Waterways in economic integration and logistics efficiency.

The Energy sector follows with 26 per cent of aggregated revised cost (Rs 10.38 trillion) across 207 projects, reflecting sustained emphasis on Oil & Gas infrastructure, electricity generation, transmission and distribution networks, and energy storage systems.

Communication infrastructure, with a project cost of Rs 2.64 trillion (7%) across 15 projects, represents targeted interventions aimed at strengthening digital connectivity.

Water & Sanitation projects account for Rs 2.08 trillion (5%) across 56 projects, highlighting continued focus on essential urban services.

Social & Commercial infrastructure, comprising 88 projects with a revised project cost of Rs 0.94 trillion (2%), reflects selective investments in education, healthcare, real estate, and tourism, hospitality and wellness.

Projects classified under 'Others', amounting to Rs 2.18 trillion (5%) across 140 projects, indicate diversification across sectors such as coal, steel, metals, and mining.