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

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

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.

Your next big infra connection is waiting at RAHSTA 2025 – Asia’s Biggest Roads & Highways Expo, Jio World Convention Centre, Mumbai. Don’t miss out!

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.

Next Story
Real Estate

Vitizen Hotels Signs Deal at Manyata Tech Park

Vikram Kamats Hospitality, as part of its ongoing expansion in key metropolitan markets, announced that its material subsidiary, Vitizen Hotels, has signed a long-term lease agreement for a 45-key hotel property at Manyata Tech Park, Bengaluru.Strategically located in the city’s prominent IT hub, the property is well-positioned to serve corporate travelers, business professionals, and long-stay guests. The addition aligns with the company’s asset-light growth model, leveraging long-term leases to expand its footprint in high-demand urban markets.The hotel is expected to strengthen the comp..

Next Story
Infrastructure Transport

CONCOR Signs MoU with BPIPL to Operate Container Terminal at Bhavnagar Port

Container Corporation of India (CONCOR) has signed a Memorandum of Understanding (MoU) with Bhavnagar Port Infrastructure (BPIPL) on September 4, 2025, in New Delhi to operate and maintain the upcoming container terminal at the northside of Bhavnagar Port, Gujarat.BPIPL had earlier entered into an agreement with the Gujarat Maritime Board (GMB) in September 2024 for the port’s development. Under this arrangement, 235 hectares of land has been leased to BPIPL for 30 years, with provision for expansion by an additional 250 hectares.The new terminal is expected to significantly enhance logistic..

Next Story
Infrastructure Transport

Concord Launches India’s First Indigenous Zero-Emission Rail Propulsion

Concord Control Systems (CCSL), a leader in embedded electronics and critical rail technologies, has announced the development of India’s first fully indigenous zero-emission propulsion system, marking a significant step toward the country’s railway electrification and net-zero goals for 2030.Powered by Lithium Iron Phosphate (LFP) batteries and featuring a DC chopper-based drive, the propulsion system eliminates idling losses common in diesel engines, offering higher efficiency, lower costs, and zero emissions.What sets this innovation apart is its completely indigenous design. Except for..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?