Infrastructure Projects See Cost Overrun Of Rs Three Point Four Trillion
ECONOMY & POLICY

Infrastructure Projects See Cost Overrun Of Rs Three Point Four Trillion

The Ministry of Statistics and Programme Implementation (MoSPI) reported a cost overrun of Rs three point four trillion (tn) across ongoing infrastructure projects, based on revised estimates and progress data. The portfolio comprises 1,775 projects, including 735 Mega projects and 1,040 Major projects, with original costs of Rs 28.77 tn and Rs 4.93 tn respectively. Physical and financial progress broadly move in tandem, with many projects in the initial zero to 20 per cent and advanced 81 to 100 per cent stages.

Transport and Logistics leads with 1,246 projects and revised estimates of Rs 19.81 tn, reflecting emphasis on connectivity. The Ministry of Road Transport and Highways implements 993 projects and accounts for Rs 9.62 tn of revised cost, while the Ministry of Railways implements 190 projects with Rs 6.38 tn in revised estimates. This concentration underlines the central role of roads and rail in the national pipeline.

Other departments implement varied portfolios. The Ministry of Coal runs 121 projects with Rs 2.22 tn in revised costs, while Petroleum and Natural Gas, Power, Housing and Urban Affairs, and Water Resources implement 103, 98, 50 and 38 projects with revised costs of Rs 4.23 tn, Rs 6.08 tn, Rs 3.78 tn and Rs 2.01 tn respectively. The remaining 182 projects total Rs 2.78 tn across several ministries.

By sector, Transport and Logistics represents 53 per cent of revised cost and 70 per cent of projects, while Energy accounts for Rs 10.66 tn across 205 projects or 29 per cent of the aggregated cost. Communication infrastructure totals Rs 1.34 tn across 31 projects and water and sanitation account for Rs 2.05 tn across 53 projects. Social and commercial infrastructure and projects classified as Others reflect targeted and diversified investments.

Physical progress exceeds financial progress in the advanced completion band, while financial progress is relatively higher in early stages because of upfront expenditure. Projects classified under Others amount to Rs 2.26 tn across 149 projects, indicating diversification into coal, steel and mining related works. Continued monitoring of timelines and costs will be essential to manage overruns and steer projects to completion.

The Ministry of Statistics and Programme Implementation (MoSPI) reported a cost overrun of Rs three point four trillion (tn) across ongoing infrastructure projects, based on revised estimates and progress data. The portfolio comprises 1,775 projects, including 735 Mega projects and 1,040 Major projects, with original costs of Rs 28.77 tn and Rs 4.93 tn respectively. Physical and financial progress broadly move in tandem, with many projects in the initial zero to 20 per cent and advanced 81 to 100 per cent stages. Transport and Logistics leads with 1,246 projects and revised estimates of Rs 19.81 tn, reflecting emphasis on connectivity. The Ministry of Road Transport and Highways implements 993 projects and accounts for Rs 9.62 tn of revised cost, while the Ministry of Railways implements 190 projects with Rs 6.38 tn in revised estimates. This concentration underlines the central role of roads and rail in the national pipeline. Other departments implement varied portfolios. The Ministry of Coal runs 121 projects with Rs 2.22 tn in revised costs, while Petroleum and Natural Gas, Power, Housing and Urban Affairs, and Water Resources implement 103, 98, 50 and 38 projects with revised costs of Rs 4.23 tn, Rs 6.08 tn, Rs 3.78 tn and Rs 2.01 tn respectively. The remaining 182 projects total Rs 2.78 tn across several ministries. By sector, Transport and Logistics represents 53 per cent of revised cost and 70 per cent of projects, while Energy accounts for Rs 10.66 tn across 205 projects or 29 per cent of the aggregated cost. Communication infrastructure totals Rs 1.34 tn across 31 projects and water and sanitation account for Rs 2.05 tn across 53 projects. Social and commercial infrastructure and projects classified as Others reflect targeted and diversified investments. Physical progress exceeds financial progress in the advanced completion band, while financial progress is relatively higher in early stages because of upfront expenditure. Projects classified under Others amount to Rs 2.26 tn across 149 projects, indicating diversification into coal, steel and mining related works. Continued monitoring of timelines and costs will be essential to manage overruns and steer projects to completion.

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