Centre's 33 TN Infra Projects Face 25% Cost Overrun

21 Dec 2024 CW Team

The Union Ministry for Statistics and Programme Implementation has reported that central agencies managing 33 infrastructure projects in Tamil Nadu are dealing with a cumulative cost overrun of 25.41 per cent. These projects, originally estimated at Rs 792.26 billion, are now projected to cost Rs 993.53 billion, with various factors contributing to delays and increased expenses.

According to data from the online project monitoring system, significant cost overruns have been observed in projects such as the Tuticorin airport development and the Trichy airport upgrade. The Bharat Petroleum Corporation (BPCL) Irugur-Devangonthi project, sanctioned in 2012, has seen a cost escalation of 155 per cent, with its budget now revised to Rs 17.32 billion despite being only 44 per cent complete. Similarly, the Mass Rapid Transit System (MRTS) extension from Velachery to St. Thomas Mount, which began in 2006, has experienced a 48 per cent cost overrun, bringing the revised estimate to Rs 7.34 billion.

On a national scale, as of November, 438 out of 1,747 on-going projects have exceeded their original cost estimates, resulting in a combined cost overrun of 62 per cent. The ministry explained that the reasons for these delays and increased expenses vary across projects and include technical, financial, and administrative challenges. It identified factors such as underestimation of initial costs, fluctuations in foreign exchange rates, changes in statutory duties, rising costs of environmental safeguards and rehabilitation measures, increasing land acquisition expenses, labour shortages, scope changes, monopolistic pricing by vendors, general inflation, and time overruns.

One notable example is the Tindivanam-Nagari new railway line project undertaken by Southern Railways, which illustrates the scale of these challenges.

Infrastructure Transport

01 Jun 2026

MMRDA advances 250 m on Orange Gate–Marine Drive tunnel

The Mumbai Metropolitan Region Development Authority (MMRDA) has completed 250 m of underground tunnelling for the Orange Gate–Marine Drive Urban Road Tunnel using India’s largest slurry shield tunnel boring machine (TBM) deployed for an urban road project.The project involves twin tunnels extending over 7 km beneath critical transport corridors, including Central Railway, Western Railway and Metro Line 3. The work requires high-precision engineering to navigate densely developed urban infrastructure.Once completed, the tunnel is expected to reduce travel time between Orange Gate and Marin..

Hindustan Zinc Pays Rs 188.46 Billion in FY26

Hindustan Zinc contributed Rs 188.46 billion to the public exchequer in FY 2025-26, according to its 9th Tax Transparency Report. The contribution, equivalent to 46 per cent of the company’s revenue, included direct and indirect taxes, government royalties, dividends to the Government of India, withholding taxes and other statutory levies.The company’s five-year cumulative contribution to the exchequer stood at Rs 915.72 billion. In FY26, Hindustan Zinc reported revenue of Rs 408.44 billion, EBITDA of Rs 221.62 billion and profit after tax of Rs 138.32 billion. It also achieved its highest..

World of Concrete India 2026 Opens in Mumbai

Informa Markets in India will host the 12th edition of World of Concrete India 2026 from 3–5 June 2026 at the Bombay Exhibition Centre, Mumbai. The specialised B2B exhibition will bring together manufacturers, suppliers, contractors, developers, architects, consultants, infrastructure companies, project leaders and government stakeholders.The event is expected to feature over 350 brands and more than 18,000 trade professionals. It will cover concrete and cement, dry mortar, precast technologies, formwork, construction chemicals, industrial and commercial flooring, scaffolding, safety solutio..