MoSPI report shows Rs 3.22 lakh crore cost overrun in India’s ongoing infrastructure projects

New Delhi: Infrastructure projects worth more than Rs 150 crore each recorded a cumulative cost overrun of approximately Rs 3,21,976 crore, according to a monthly government report for September 2026.

About 1,853 ongoing infrastructure projects across 17 central ministries/ departments were monitored, and it was found that the total revised cost was Rs 37,55,803 crore compared to the original cost of Rs 34,33,827 crore.

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


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The cumulative expenditure on these projects stands at Rs 17.73 lakh crore, accounting for about 47.21 per cent of the project cost, indicating steady progress in implementation.

A significant proportion of projects are at advanced stages, with 654 projects (35 per cent) achieving over 80 per cent physical progress, and 338 (18 per cent) crossed 80 per cent financial completion.

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

Out of 1,853 ongoing infrastructure projects, there are 780 Mega projects (project cost of Rs 1,000 crore and above), and 1,073 major projects (below Rs 1,000 crore).

The Transport & Logistics sector (as per the DEA's Harmonised Master List) accounts for the highest number of ongoing projects (1,320 projects), with a cost of Rs 20.07 lakh crore underscoring priority to connectivity-driven infrastructure growth.

It stated that 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.

The Ministry of Road Transport & Highways accounts for the highest number of projects, with 974 projects (53 per cent out of total projects 1853), and a share of total revised project cost of Rs 9.46 lakh crore (25 per cent of total project cost Rs 37.56 lakh crore), highlighting its central role in national infrastructure development.

The Ministry of Railways has 284 ongoing projects (15 per cent), with a total revised project cost of Rs 7.21 lakh crore (19 per cent).

The Ministry of Coal accounts for 121 ongoing projects (6 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 115, 106, 49, and 35 projects, with associated project costs of Rs 4.30 lakh crore, Rs 6.40 lakh crore, Rs 3.41 lakh crore, and Rs 1.95 lakh crore, respectively.

The remaining 169 projects (9 per cent), with a total project cost of Rs 2.62 lakh crore (7 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.