Centrally funded infrastructure projects log 16.4% cost jump in January

Centrally funded infrastructure projects reported a 16.4% cost jump in January, with revised estimates climbing to ₹39.2 trillion across 1,702 projects, even as overruns eased sequentially

Aggregate costs of centrally funded infrastructure projects jumped 16.4 per cent in January as cost overruns pushed revised estimates to ₹39.2 trillion from their original cost of ₹33.7 trillion across 1,702 ongoing projects, said a report.

 

The latest flash report on central-sector infrastructure projects by the Ministry of Statistics and Programme Implementation (Mospi) is for projects costing ₹150 crore and above.

 

However, the cost overrun in January 2026 moderated sequentially from 18.3 per cent in December 2025 across the same ministries and departments.

 

In absolute terms, cost escalation was ₹5.53 trillion in January from original estimates, down from ₹5.42 trillion a month earlier.

   

The Department of Water Resources, River Development and Ganga Rejuvenation (GR) continued to report the steepest overrun among individual ministries.

 

Revised costs are more than double from initial estimates and recorded an overrun of ₹99,854 crore, a 102 per cent jump, the same level as December.

 

The Department of Telecommunications (DoT) followed with an 80.36 per cent overrun amounting to ₹1.22 trillion, while the Ministry of Mines registered an escalation of nearly 27.7 per cent or ₹2,380.14 crore. 

 

The Ministry of Road Transport and Highways, which accounts for the largest share of ongoing central projects, saw costs rise 1.91 per cent over the original outlay, translating into an overrun of about ₹15,300.6 crore.

 

Similarly, projects under health and family welfare, railways, steel and petroleum and natural gas saw costs rise by 24.4 per cent, 21.9 per cent, 16.6 per cent and 15.5 per cent, respectively.

 

In contrast, only a handful of ministries, such as Higher Education and Sports, reported savings. Their revised expenditures were below the original estimates by 1.75 per cent and 32.5 per cent, respectively.