What Happened
- The Ministry of Statistics and Programme Implementation's (MoSPI) monthly Flash Report for February 2026 revealed that 1,948 central infrastructure projects — each valued at ₹150 crore or above — collectively recorded a cost overrun of ₹5.66 lakh crore.
- The revised total cost of these 1,948 projects stands at ₹41.98 lakh crore, compared to their original sanctioned cost of ₹36.32 lakh crore — an overrun of approximately 15.6 percent.
- Cumulative expenditure already incurred on these projects amounts to ₹19.71 lakh crore, roughly 46.95 percent of the revised project cost, indicating that more than half the expenditure is still to come.
- The Transport and Logistics sector accounts for the highest number of projects (1,421 out of 1,948), with a revised estimate of ₹22.96 lakh crore — reflecting the heavy weight of roads, railways, and port projects in the portfolio.
- These 1,948 projects are monitored across 17 central ministries and departments through MoSPI's web-based PAIMANA portal, which replaced the older OCMS-2006 system.
Static Topic Bridges
MoSPI's Infrastructure Project Monitoring System
The Ministry of Statistics and Programme Implementation (MoSPI) runs the Infrastructure and Project Monitoring Division (IPMD), which tracks all central sector infrastructure projects worth ₹150 crore and above. The IPMD publishes a monthly Flash Report (summarising cost and time overruns) and a quarterly Project Implementation Status Report (detailed analysis). Projects are assessed on physical milestones and financial expenditure against link plans. The portal PAIMANA (Project Assessment, Infrastructure Monitoring and Analytics for Nation-building) is MoSPI's current digital platform for this monitoring function.
- Projects covered: Central sector projects ≥ ₹150 crore
- Ministries monitored: 17 central ministries/departments
- Publications: Monthly Flash Report + Quarterly Project Implementation Status Report
- Portal: PAIMANA (replaced OCMS-2006)
- Cost overrun = revised cost − original sanctioned cost; time overrun = months beyond scheduled completion
- MoSPI's broader mandate: official statistics (GDP, CPI, IIP), surveys (NSS, PLFS), and programme implementation monitoring
- MoSPI does not have project execution authority — it is a monitoring and reporting body only
Connection to this news: The Flash Report is the primary official data source for tracking fiscal efficiency of government capital expenditure. The ₹5.66 lakh crore overrun figure is the kind of precise statistic that UPSC includes as MCQ option choices.
Cost and Time Overruns: Causes and Fiscal Implications
Infrastructure project overruns in India arise from a cluster of recurring causes: delays in land acquisition (projects stall waiting for clearances), forest and environmental clearances under the Forest Conservation Act and EIA notification, inter-departmental coordination failures, price escalation clauses in contracts (especially for steel and cement), incomplete project preparation before sanction (leading to design revisions mid-construction), and fund release delays from the parent ministry. The Kelkar Committee on Revisiting and Revitalising PPP Models (2015) and the Standing Committee on Infrastructure have both highlighted that poor pre-project preparation is the single biggest driver of subsequent overruns.
- Cost overrun of 15.6% (₹5.66 lakh crore on ₹36.32 lakh crore base) is significant but has been higher in earlier years
- A May 2024 Flash Report had flagged ₹5.71 lakh crore in overruns (458 projects), indicating this is a persistent structural issue
- Key causes: land acquisition delays, forest/environment clearances, design changes, contractor failures, fund shortfalls
- Land Acquisition Act (Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013) has made land acquisition lengthier and costlier
- PM GatiShakti National Master Plan (launched October 2021): aims to address inter-ministry coordination failures through an integrated infrastructure planning platform
Connection to this news: The cost overrun data is the output measure of governance effectiveness in infrastructure delivery. PM GatiShakti is precisely the government's response mechanism to the inter-ministry coordination failures that drive these overruns.
PM GatiShakti and National Infrastructure Pipeline
PM GatiShakti National Master Plan (NMP), launched in October 2021, is a digital platform built on ISRO's bhuvan spatial planning tool that integrates data from 16 (now expanded) ministries to enable coordinated infrastructure planning. It is the government's structural response to the historic problem of siloed ministry planning that led to roads being dug up after being laid, ports being built without connecting rail, and power plants constructed without evacuation infrastructure. The National Infrastructure Pipeline (NIP) — announced in 2019 — projected ₹111 lakh crore of infrastructure investment over FY2020–2025, with 42% from the Centre, 24% from states, and 34% from the private sector.
- PM GatiShakti NMP: launched October 13, 2021; based on ISRO's bhuvan geospatial platform
- Integrates: roads, railways, ports, airports, waterways, logistics, power, gas, telecom — now 35+ ministries/departments
- Network Planning Group (NPG) under GatiShakti: evaluates projects for connectivity integration before sanction
- National Infrastructure Pipeline (NIP): ₹111 lakh crore (FY2020-FY2025); extended to ₹111 lakh crore for FY2025-FY2030
- Transport and Logistics sector: 1,421 of 1,948 monitored projects; revised cost ₹22.96 lakh crore
- PM GatiShakti NPG has evaluated 352 infrastructure projects worth ₹16.10 lakh crore (as of early 2026)
Connection to this news: The persistent cost overruns despite GatiShakti indicate that while coordination has improved, execution-stage challenges (land acquisition, clearances, contractor capacity) remain unresolved through planning tools alone.
Key Facts & Data
- Projects monitored: 1,948 central sector projects (each ≥ ₹150 crore)
- Original cost: ₹36,32,088 crore (₹36.32 lakh crore)
- Revised cost: ₹41,98,684 crore (₹41.98 lakh crore)
- Cost overrun: ₹5.66 lakh crore (~15.6%)
- Cumulative expenditure: ₹19.71 lakh crore (~46.95% of revised cost)
- Ministries covered: 17 central ministries/departments
- Transport & Logistics: 1,421 projects, revised cost ₹22.96 lakh crore (largest sector by count)
- Monitoring body: MoSPI — Infrastructure and Project Monitoring Division (IPMD)
- Portal: PAIMANA (replaced OCMS-2006)
- PM GatiShakti NMP: launched October 13, 2021
- NIP total size: ₹111 lakh crore