Centrally funded infrastructure projects see 18.3% cost jump in December

Revised estimates of 1,392 ongoing projects climbed to ₹35.1 trillion as overruns persisted, though the pace of cost escalation eased sequentially from November

Aggregate costs of centrally funded infrastructure projects jumped nearly 18.3 per cent in December as cost overruns pushed revised estimates to ₹35.1 trillion from the original cost of ₹29.7 trillion across 1,392 ongoing projects, according to data from the latest Flash Report on Central Sector Infrastructure Projects Costing ₹150 Crore and Above by the Ministry of Statistics and Programme Implementation (MoSPI). However, the cost overrun in December moderated sequentially from 22 per cent in November.

 

In absolute terms, cost escalation stood at ₹5.42 trillion from the original estimates, up from ₹5.37 trillion a month earlier.

 

The Department of Water Resources, River Development and Ganga Rejuvenation continued to report the steepest overrun among individual ministries, with revised costs more than doubling from initial estimates and recording an overrun of ₹99,854 crore, a 102 per cent jump, the same level as in November. The Department of Telecommunications 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 1.96 per cent over the original outlay, translating into an overrun of about ₹10,358 crore. Similarly, projects under railways, steel, power, and petroleum and natural gas saw costs rise by 21.4 per cent, 16.6 per cent, 15.8 per cent and 15.5 per cent, respectively.

 

In contrast, only a handful of ministries, such as higher education and sports, reported savings, with their revised expenditure below the original estimates by 1.77 per cent and 32.5 per cent, respectively.