Cumulative cost overrun registered by infrastructure projects, Pg8

Key Highlights:

• Infrastructure projects in India, each valued at over ₹150 crore, have registered a cumulative cost overrun of approximately ₹4.92 lakh crore as of June 2026.
• The Ministry of Statistics and Programme Implementation (MoSPI) reported that 1,847 ongoing projects were monitored.
• The total revised cost for these projects stands at ₹40.54 lakh crore, significantly higher than their original estimated cost of ₹35.61 lakh crore.
• Monitoring is conducted through the PAIMANA (Project Appraisal, Implementation and Monitoring) portal.

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Detailed Insights:

• The monitored projects span across 17 central ministries and departments, with the Transport and Logistics sector accounting for the largest share of projects.
• Cumulative expenditure on these projects has reached ₹21.97 lakh crore, representing 54.18% of the revised project value, indicating steady implementation progress.
• Approximately 39% (709 projects) of the monitored projects have achieved over 80% physical progress, while 19% (337 projects) have crossed 80% financial completion.
• Common reasons for cost overruns include delays in land acquisition, environmental and forest clearances, law and order issues, utility shifting, and underestimation of original costs.
• Government initiatives like PRAGATI (Pro-Active Governance and Timely Implementation) and PM Gati Shakti aim to resolve bottlenecks and expedite project implementation.
• The Infrastructure and Project Monitoring Division (IPMD) under MoSPI is responsible for monitoring these central sector projects.

Key Concepts Involved:

• Cost Overrun: When the actual cost of a project exceeds its initially estimated budget.
• Infrastructure Projects: Large-scale public works essential for economic development, such as roads, railways, ports, and power plants.
• Central Sector Projects: Development projects fully funded and implemented by the Central Government of India.
• PAIMANA: A web-based system used by MoSPI to monitor the progress of central sector infrastructure projects.