Cost of Centrally Funded Infrastructure Projects Surges 17.02% in February
Centrally funded infrastructure projects log 17.02% cost jump in February
Business Standard
Image: Business Standard
In February, the aggregate costs of centrally funded infrastructure projects in India surged by 17.02%, reaching ₹42.5 trillion from ₹36.3 trillion due to cost overruns across 1,948 projects. The report from the Ministry of Statistics and Programme Implementation highlights significant increases in various sectors, with the Department of Water Resources reporting the highest overruns.
- 01Aggregate costs of centrally funded infrastructure projects increased by 17.02% in February.
- 02Total revised costs reached ₹42.5 trillion, up from ₹36.3 trillion.
- 03The Department of Water Resources reported an 85.2% cost overrun, amounting to ₹1.04 trillion.
- 04The Ministry of Road Transport and Highways saw a 2.72% increase, translating to ₹27,891 crore.
- 05Only a few ministries, such as higher education and sports, reported savings.
Advertisement
In-Article Ad
In February, the costs of centrally funded infrastructure projects in India experienced a significant jump of 17.02%, raising the total revised estimates to ₹42.5 trillion from ₹36.3 trillion. This increase is attributed to cost overruns across 1,948 ongoing projects, as reported by the Ministry of Statistics and Programme Implementation (Mospi). The cost overruns have escalated sequentially from 16.4% in January and remain below the 18.3% recorded in December 2022. The Department of Water Resources, River Development and Ganga Rejuvenation reported the steepest overrun, with costs rising by 85.2%, amounting to ₹1.04 trillion. The Department of Telecommunications followed closely with an 80.36% overrun totaling ₹1.22 trillion. In contrast, the Ministry of Road Transport and Highways, which manages the largest share of ongoing projects, saw a modest increase of 2.72%, translating to an overrun of approximately ₹27,891 crore. While most sectors faced cost escalations, a few, including higher education and sports, managed to report savings, with expenditures below original estimates by 1.75% and 32.5%, respectively.
Advertisement
In-Article Ad
The rising costs of infrastructure projects could lead to increased public spending and potential delays in project completion, affecting various sectors reliant on these developments.
Advertisement
In-Article Ad
Reader Poll
Do you think the government should implement stricter controls on infrastructure project budgets?
Connecting to poll...
More about Ministry of Statistics and Programme Implementation
Read the original article
Visit the source for the complete story.



