THE POLICY EDGE

MoSPI Flash Report Flags ₹5.65 Lakh Crore Cost Overrun in Central Projects

MoSPI’s April 2026 Flash Report tracks 1,981 central projects above ₹150 crore and shows that large transport and energy portfolios continue to drive infrastructure spending despite substantial cost revisions and execution bottlenecks

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The Infrastructure and Project Monitoring Division (IPMD) of the Ministry of Statistics and Programme Implementation (MoSPI) has released its national Flash Report for April 2026. The statutory document monitors central sector infrastructure projects costing ₹150 crore and above. Nationally, MoSPI is tracking 1,981 ongoing projects distributed across 17 Line Ministries and Departments. The data reveals an aggressive macroeconomic expansion but flags a persistent fiscal strain: while the collective original cost of these assets was pegged at ₹37,12,662 crore, severe delays and structural bottlenecks have pushed the revised estimated cost to ₹42,78,402 crore, resulting in a cumulative cost overrun of ₹5,65,740 crore.

Portfolio Dominance and Regional Dispersal

The infrastructure pipeline remains heavily weighted toward linear transport networks and energy security. The Ministry of Road Transport & Highways (MoRTH) commands the largest single portfolio with 1,137 ongoing projects (original cost of ₹10,54,523 crore), followed by the Ministry of Railways with 260 projects (original cost of ₹7,18,136 crore). In terms of actual financial utilization, cumulative expenditure across the entire national pipeline has reached ₹20,36,108 crore, representing 47.59 percent of the revised cost architecture. Regionally, the North Eastern Region (NER) is maintaining a slightly faster execution pace, tracking 229 ongoing projects with a capital expenditure of ₹1,67,192 crore, translating to a 49.25 percent financial utilization rate.

Project Milestones and Sectoral Progress Tracking

During the month of April 2026, nine projects were commissioned, while a targeted subset of 5 completed projects represented a combined original cost of ₹1,103.41 crore (comprising 4 Waste & Water assets and 1 Healthcare asset). High-frequency monitoring of headline mega-projects shows advanced physical progress across key corridors. The Western Dedicated Freight Corridor has achieved ~96 percent progress, with its cost revised from ₹51,101 crore to ₹1,24,005 crore. The Mumbai–Ahmedabad High Speed Rail (508 km) has logged ~59.86 percent progress with ₹90,502 crore spent out of its ₹1,08,000 crore layout. In the energy sector, ONGC's KG-DWN-98/2 Cluster-II gas project reports 96.5 percent completion, while the Panipat Refinery Expansion (15→25 MMTPA) has reached 93.2 percent progress.

Key Metrics and Infrastructure Project Baselines

The institutional data points extracted from the MoSPI monitoring registries illustrate the capital exposure, cost escalations, and spending behavior across top portfolios and selected states:

Line Ministry / State Portfolio

Ongoing Project Count

Original Cost (₹ Crore)

Cumulative Expenditure (₹ Crore)

Structural & Performance Status

Ministry of Road Transport & Highways

1,137

10,54,523

3,69,902

Includes 418 high-value "mega projects"totaling ₹7,05,702 crore in original capital layout.

Ministry of Railways

260

7,18,136

5,78,947

Features 138 mega projects; high capital draw relative to original project baselines.

Ministry of Petroleum & Natural Gas

112

4,51,191

3,03,291

Fast-tracked by downstream assets like the Panipat Refinery expansion (93.2% complete).

Ministry of Power

102

4,95,682

2,00,896

Anchored by large mid-stage assets like the Dibang Multipurpose Project (17.43% complete).

State Profile: Gujarat

123

4,25,591

3,88,320

High-density spending zone driven by the Bullet Train corridor and offshore gas blocks.

State Profile: Uttar Pradesh

182

4,01,452

2,66,900

Massive active footprint across linear highways, economic zones, and regional rail nodes.

State Profile: Water Resources (Porto)

48

1,21,294

1,61,825

Expenditure exceeds original cost due to sharp, back-ended upward cost revisions.


What is a "Cost Overrun"?

A cost overrun is an inflationary financial variance that occurs when the actual accumulated expenditure or the updated final cost estimate of an infrastructure project exceeds its originally sanctioned budgetary baseline. In central infrastructure monitoring, cost overruns represent structural inefficiencies usually triggered by prolonged land acquisition stalemates, delay in regulatory or environmental clearances, shifting engineering designs, or raw material price inflation during the construction cycle. When overruns occur at a systemic level—as seen in the ₹5.65 lakh crore gap in the April 2026 report—it locks up critical public capital inside incomplete assets, lowering the immediate economic return on infrastructure investment and forcing line ministries to seek supplementary budgetary allocations.


Policy Relevance

  • Exposes the Urgent Need for PM Gati Shakti Interventions: The massive ₹5.65 lakh crore national cost overrun highlights that the Ministry of Finance and line departments must intensify the use of PM Gati Shakti’s geospatial planning tools to resolve inter-ministerial clearance bottlenecks before projects enter construction.

  • Signals Bank Liquidity Absorption by Mega-Transport Sectors: With MoRTH and Railways combining for over ₹17.7 lakh crore in original costs, these two sectors absorb a dominant share of public capital expenditure, requiring policymakers to actively encourage private public-private partnership (PPP) alternatives.

  • Flags Asset-Liability Pressures in Public Utilities: Portfolios like Water Resources, where expenditure (₹1,61,825 crore) has breached original costs (₹1,21,294 crore), demonstrate that back-ended engineering changes can disrupt long-term fiscal planning, requiring rigid upfront project design locks.

  • Validates the Strategic Acceleration of Strategic Energy Corridors: Advanced execution across critical energy nodes like the KG-DWN-98/2 block (96.5% complete) ensures that domestic oil and gas production lines will onboard shortly, helping insulate the country from global energy disruptions.

  • Directs Project Management Agency Priorities for DILRMP 3.0: The fact that linear highway projects (1,137 units) face the highest delay risks reinforces the need to link MoRTH planning directly with the incoming Digital Land Stack to automate and de-risk the land acquisition process.


Follow the Full Data Here: MoSPI Press Release: Flash Report on Central Sector Projects April 2026

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