Infrastructure Project Price Overruns Climb to Six-Month High
ECONOMY & POLICY

Infrastructure Project Price Overruns Climb to Six-Month High

According to data released by the federal government, price overruns climbed to a six-month high in September, reversing the features made in the previous couple of months. In September, the predicted price of central infrastructure tasks was 21.92% more than the unique price, compared to 19.08% in August.

The federal government may seek to spend an additional Rs 4.5 lakh crore on projects costing Rs 150 crore or more, bringing the total investment to Rs 24.8 lakh crore. In addition, the completion time increased from 36.96 months to 38.63 months in comparison to the previous month. Though the number of delayed assignments decreased to 823 in September from 830 in August, 58% are currently delayed for more than two years.

In September, the federal government's monitoring portal considered 1,418 tasks, 12 of which were added from the previous month. In September, the federal government completed 46 missions. The report notes that 268 tasks had been on schedule, whereas 242 confronted price and time overruns.Nevertheless, it highlights that this may occasionally not current the precise image on the bottom, as not all businesses could also be reporting or offering checklist of milestones.

?The involved administrative Ministry might prefer to assessment the tasks with a view to keep away from additional price overrun, time overruns, to agency up milestones in case of milestone will not be accessible, to agency up revised price estimates and revised commissioning schedule if the identical has been not revised and lapsed,? the report acknowledged.

Railways was one of the ministries experiencing the greatest price overruns, with estimated costs in 173 tasks being 68.1% more than the original cost. The 41 jobs of the Ministry of Water Resources saw 195.6% cost overruns, whereas highways, which accounted for over half of all tasks monitored under the system, only 4.3% cost overruns.

Northeastern states had the lowest price overruns, followed by Andhra Pradesh.

According to data released by the federal government, price overruns climbed to a six-month high in September, reversing the features made in the previous couple of months. In September, the predicted price of central infrastructure tasks was 21.92% more than the unique price, compared to 19.08% in August. The federal government may seek to spend an additional Rs 4.5 lakh crore on projects costing Rs 150 crore or more, bringing the total investment to Rs 24.8 lakh crore. In addition, the completion time increased from 36.96 months to 38.63 months in comparison to the previous month. Though the number of delayed assignments decreased to 823 in September from 830 in August, 58% are currently delayed for more than two years. In September, the federal government's monitoring portal considered 1,418 tasks, 12 of which were added from the previous month. In September, the federal government completed 46 missions. The report notes that 268 tasks had been on schedule, whereas 242 confronted price and time overruns.Nevertheless, it highlights that this may occasionally not current the precise image on the bottom, as not all businesses could also be reporting or offering checklist of milestones. ?The involved administrative Ministry might prefer to assessment the tasks with a view to keep away from additional price overrun, time overruns, to agency up milestones in case of milestone will not be accessible, to agency up revised price estimates and revised commissioning schedule if the identical has been not revised and lapsed,? the report acknowledged. Railways was one of the ministries experiencing the greatest price overruns, with estimated costs in 173 tasks being 68.1% more than the original cost. The 41 jobs of the Ministry of Water Resources saw 195.6% cost overruns, whereas highways, which accounted for over half of all tasks monitored under the system, only 4.3% cost overruns. Northeastern states had the lowest price overruns, followed by Andhra Pradesh.

Related Stories

Gold Stories

Next Story
Products

Koemmerling opens Navi Mumbai experience centre

Koemmerling, a brand of the profine Group, has expanded its presence in the Mumbai metropolitan region with the opening of a new experience centre in Navi Mumbai and launched its Allure S46 minimal sliding door system for the Indian market.Located in CBD Belapur, the facility was inaugurated by Peter Mrosik, Owner and CEO, profine Group, along with Farid Khan, Chairman and Managing Director, profine India, and Kamal Bajaj, CEO, profine India.The company said the new centre will showcase its portfolio of uPVC and aluminium window and door systems to architects, developers and homeowners.The ina..

Next Story
Products

India's waterproofing market nears Rs 150 bn milestone

India's waterproofing industry is approaching a market size of Rs 150 billion and is expected to surpass the $2 billion milestone, according to speakers at the 2nd India International Waterproofers Conference & Expo 2026 organised by the Waterproofers Association of India (WAI) in New Delhi.The two-day event brought together more than 20 speakers, 55 international delegates and 53 exhibition booths, with discussions focusing on climate-resilient construction, advanced waterproofing technologies and international collaboration.Inaugurating the event, Durga Shanker Mishra, former Secretary, ..

Next Story
Real Estate

Dilip Buildcon Q1 FY27 Revenue at Rs 23.78 billion

Dilip Buildcon Limited reported consolidated revenue from operations of Rs 2,378 crore in Q1 FY27, along with EBITDA of Rs 429 crore and profit after tax of Rs 128 crore.Consolidated EBITDA margin stood at 18.1%, improving from 17.1% in Q4 FY26. On a standalone basis, revenue from operations was Rs 1,930 crore, EBITDA stood at Rs 199 crore and PAT was Rs 39 crore, with an EBITDA margin of 10.3%.The company’s order book stood at Rs 27,691 crore as of 30 June 2026, compared with Rs 28,830 crore as of 31 March 2026. Roads and highways accounted for 17.1% of the order book, irrigation and water ..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement