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Infra Project Cost Overruns Hit ₹5.61 Lakh Crore in March 2026; 1,941 Projects Delayed

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As of March 2026, India's central sector infrastructure projects (each above ₹150 crore) suffered combined cost overruns of ₹5.61 lakh crore. The total revised budget for 1,941 ongoing projects has ballooned to ₹41.50 lakh crore, against an expenditure of ₹19.93 lakh crore so far. Key sectors facing overruns include railways, roads, power, and petroleum. The Ministry of Statistics tracks these projects under the Flash Report on Central Sector Projects.

Key Facts & Details

7 points
  • 1
    Central sector infra projects face cost overruns of ₹5.61 lakh crore in March 2026
  • 2
    1,941 projects with total revised cost of ₹41.50 lakh crore; expenditure so far ₹19.93 lakh crore
  • 3
    Railways, roads, power and petroleum are key sectors facing delays

Deep Dive

  • +
    Projects above ₹150 crore are monitored under MoSPI's flash report system
  • +
    Time overruns accompany cost overruns — many projects run years behind schedule
  • +
    Cost overruns happen due to land acquisition delays, regulatory clearances, design changes
  • +
    PFMS (Public Financial Management System) tracks government project expenditure
Q

Exam Focus

Likely MCQ: Which ministry monitors central sector infrastructure projects for cost/time overruns? → Answer: MoSPI (Ministry of Statistics and Programme Implementation)

Related Topics

Energy & Infrastructure

Exam Relevance & Angle

Economy: Infrastructure, public expenditure, and project management.

Target Exams

UPSC CSESSC CGLSBI POIBPS PO

Background & Context

Monitoring of Central Sector Projects:
The Ministry of Statistics and Programme Implementation (MoSPI) monitors all central sector projects with original cost ≥ ₹150 crore through its Flash Report.

Common causes of cost overruns:

  1. Land acquisition delays
  2. Forest/environment clearance delays
  3. Law & order/protest issues
  4. Design revisions
  5. Price escalation (steel, cement, fuel)
  6. COVID-19 disruption (for older projects)

Key infrastructure sectors with frequent overruns:

  • Railways: Large projects like dedicated freight corridors, station redevelopment
  • Roads: NHAI projects (NH construction)
  • Power: Thermal and hydro projects
  • Petroleum: Refinery and pipeline projects

Remedies being implemented:

  • PM Gati Shakti National Master Plan: Integrated multi-modal infrastructure planning
  • National Infrastructure Pipeline (NIP): ₹111 lakh crore investment target (2020-25)
  • PFMS: Real-time tracking of fund utilization

Related GK Concepts

Must Know
Infrastructure OverrunsMoSPIPM Gati ShaktiNIPProject DelaysPFMS

Test Yourself

1 / 3

Which Ministry monitors central sector infrastructure projects for cost and time overruns?

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UPSC CSE

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Infra Project Cost Overruns Hit ₹5.61 Lakh Crore in March 2026; 1,941 Projects Delayed — Current Affairs 2026-04-21