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India's major infrastructure projects hit by ₹3.4 trillion cost overruns

Infrastructure projects worth over ₹150 crore each have accumulated cost overruns totalling ₹3.4 lakh crore, according to the Ministry of Statistics and Programme Implementation's latest monthly report.

LSN India · 25 August 2026

India's major infrastructure projects hit by ₹3.4 trillion cost overruns

A total of 1,775 ongoing infrastructure projects across 17 Central Ministries and Departments are being monitored by the government, with data from July 2026 revealing significant cost pressures on the nation's development agenda. The revised project costs now stand at ₹37.1 lakh crore, substantially higher than the original outlay of ₹33.7 lakh crore.

Despite the cost escalations, project implementation is progressing steadily, with cumulative spending reaching ₹19.26 lakh crore—approximately 52 per cent of revised project costs. A significant majority of projects are advancing toward completion, with 675 schemes (38 per cent) achieving over 80 per cent physical progress and 305 projects (17 per cent) surpassing 80 per cent of their financial milestones.

While the Ministry of Statistics and Programme Implementation's report does not specify the exact number of projects that have experienced cost overruns, the aggregate figures underscore the challenge of maintaining fiscal discipline across India's infrastructure development portfolio. The data highlights the need for improved project planning and implementation mechanisms to contain escalating costs in a complex, multi-ministry execution environment.