The latest report by the Ministry of Statistics and Programme Implementation (MoSPI) shows that infrastructure projects in India have recorded cumulative cost overruns of Rs.5.66 lakh crore, revealing a widening gap between cost estimation and actual execution. 

The April 2026 Flash Report on Central Sector Infrastructure Projects notes that the revised cost of 1,981 ongoing projects, each worth Rs. 150 crore or more has risen to Rs. 42.79 lakh crore, up from the original outlay of Rs. 37.12 lakh crore. 

Among the five key infrastructure ministries, the Water and Sanitation sector has seen an 82% increase in revised cost, the highest across all sectors. Yet it also reports 71.97% spending efficiency, making it one of the fastest-executing segments. Projects such as the Polavaram Irrigation Project have witnessed significant cost escalations of 447.23%, contributing substantially to the sector's overall cost increase. 

In contrast, the Ministry of Road Transport and Highways oversees the highest number of ongoing projects (1,137 in total), and has seen only a 3% of cost overrun, with an expenditure rate of 34.21%, indicating slower execution. 

The Ministry of Railways is implementing 260 projects and has reported the highest increase in revised cost in absolute terms and at the same time, it has achieved around 67% expenditure against the revised cost, the highest among all ministries. This positions Ministry of Railways as a high-execution but high-cost-escalation segment, where projects are progressing but with significant upward cost revisions. 

Among sectors, the Communication sector witnessed 81% rise in revised costs and also struggles with low spending efficiency of around 28%. This trend is reflected in large-scale initiatives like BharatNet, which has recorded cost overruns of 207.65%. 

The Transport and Logistics sector, witnessed largest absolute revised cost at Rs. 23 lakh crore, has experienced a relatively moderate cost increase of around 9%, alongside spending efficiency of nearly 50%, indicating a more balanced performance overall. 

Published on: May 26, 2026 11:17 AM IST