Govt infrastructure projects see cost overrun of Rs 3.4 lakh crore

Infrastructure projects worth more than Rs 150 crore each recorded a cumulative cost overrun of around Rs 3,40,504 crore, according to a monthly Government report for July 2026.

A total of 1,775 ongoing infrastructure projects across 17 Central Ministries/ Departments were monitored, and it was found that the total revised cost was Rs 37,10,642 crore compared to their original cost of Rs 33,70,138 crore.

The report, however, did not specify the actual number of projects that faced cost overrun. The cumulative expenditure incurred on these projects stands at `19.26 lakh crore, accounting for approximately 51.91 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 675 projects (38 per cent) achieving over 80 per cent physical progress, while 305 (17 per cent) have crossed 80 per cent financial completion.

The data also reflects 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 (1,246 projects), with revised estimates of Rs 19.81 lakh crore underscoring priority to connectivity-driven infrastructure growth.

1,775 ongoing infrastructure projects include 735 Mega projects (project cost of Rs 1,000 crore & above) with an original cost of Rs 28.77 lakh crore, and 1,040 Major projects (project cost below Rs 1,000 crore and up to Rs 150 crore) amounting to Rs 4.93 lakh crore.

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

While physical progress exceeds financial progress in the 81–100 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 993 projects (56 per cent), and a share of total revised project cost of Rs 9.62 lakh crore (26 per cent), highlighting its central role in national infrastructure development.

Ministry of Railways is implementing 190 projects (11 per cent), with a total revised project cost of Rs 6.38 lakh crore (17 per cent).

Ministry of Coal accounts for implementing 121 projects (7 per cent), with a total revised project cost of Rs 2.22 lakh crore (6 per cent).

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 103, 98, 50, and 38 projects, with associated revised costs of Rs 4.23 lakh crore, Rs 6.08 lakh crore, Rs 3.78 lakh crore, and Rs 2.01 lakh crore, respectively.

The remaining 182 projects (10%), with a total revised cost of Rs 2.78 lakh crore (8 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.

Transport & Logistics remains the dominant sector, accounting for 53 per cent of total revised project cost (Rs 19.81 lakh crore) across 1,246 projects (70% 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 29 per cent of aggregated revised cost (Rs 10.66 lakh crore) across 205 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 1.34 lakh crore (4 per cent) across 31 projects, represents targeted interventions aimed at strengthening digital connectivity.

Water & Sanitation projects account for Rs 2.05 lakh crore (5 per cent) across 53 projects, highlighting continued focus on essential urban services.

Social & Commercial infrastructure, comprising 91 projects with a revised project cost of Rs 0.99 lakh crore (3 per cent), reflects selective investments in education, healthcare, real estate, and tourism, hospitality and wellness.

Projects classified under ‘Others’, amounting to Rs 2.26 lakh crore (6 per cent) across 149 projects, indicate diversification across sectors such as coal, steel, metals, and mining.