Infrastructure Projects Face ₹5.61 Lakh Crore Cost Overrun in March 2026
Infra projects see cost overrun of Rs 5.61 lakh crore in March
The Economic TimesImage: The Economic Times
In March 2026, infrastructure projects in India with costs over ₹150 crore each reported a total cost overrun of ₹5.61 lakh crore, raising the revised project cost to ₹41.50 lakh crore. The Ministry of Statistics and Programme Implementation highlighted that 1,941 projects are being monitored, with significant progress in both physical and financial completion.
- 01Total cost overrun of ₹5.61 lakh crore for 1,941 infrastructure projects.
- 02Revised project cost now stands at ₹41.50 lakh crore, up from ₹35.88 lakh crore.
- 03Transport and logistics sector leads with 1,428 projects valued at ₹22.66 lakh crore.
- 04Ministry of Road Transport & Highways oversees 1,120 projects, accounting for 26% of the total cost.
- 0525 projects were commissioned in March 2026.
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According to the March 2026 'Flash Report on Central Sector Infrastructure Projects' from the Ministry of Statistics and Programme Implementation (MoSPI), infrastructure projects in India with a budget exceeding ₹150 crore have experienced a cumulative cost overrun of ₹5.61 lakh crore. This has increased the total revised cost of 1,941 projects to ₹41.50 lakh crore, compared to the original cost of ₹35.88 lakh crore. The report indicates that about 48.02% of the revised project cost has been incurred so far, amounting to ₹19.93 lakh crore, showcasing steady progress in implementation. Notably, the transport and logistics sector dominates with 1,428 projects valued at ₹22.66 lakh crore, emphasizing the focus on connectivity-driven infrastructure. The Ministry of Road Transport & Highways manages the largest share, with 1,120 projects and a total revised cost of ₹10.61 lakh crore. Physical progress is evident, with 40% of projects achieving over 80% completion. In March alone, 25 projects were commissioned, reflecting ongoing efforts to bolster infrastructure development across various sectors.
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The significant cost overruns may lead to increased project timelines and potential impacts on public funding and resource allocation. Homebuyers and commuters may experience delays in infrastructure benefits.
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