Uttar Pradesh, Bihar, Maharashtra, Tamil Nadu, Gujarat and Andhra Pradesh have the highest number of ongoing infrastructure projects — costing ₹150 crore or more — facing cost overruns, the Rajya Sabha was informed Monday.

Of the total 1747 projects that are being monitored (as of November 2024), 25 per cent of the projects (438 projects) are facing cost overruns with respect to the original cost. Of the total such projects , 39 per cent are in six States- UP (41 projects), Bihar (36) Maharashtra (34), TN (33), Gujarat (27) and Andhra Pradesh (26). The percentage increase in cost of projects is between 110-25 per cent. While Maharashtra has 34 projects, originally worth ₹87,000 crore, are facing a cost over-run of 45 per cent, the percentage of cost-run in Andhra is 110 per cent for 26 projects worth ₹57,800 crore.

“The Ministry of Statistics and Programme Implementation is mandated to monitor Ongoing Central Sector Infrastructure Projects costing ₹150 crore and above on time and cost overrun, based on the information reported by the Line Ministries/ Project Implementing Agencies on the Online Computerised Monitoring System (OCMS) of this Ministry,” the written reply tabled in the Upper House stated. In most States, projects implemented by Airport Authority of India , Indian Railways and National Highway Authority of India are those that are facing cost escalations.

The highest percentage of cost overrun has been seen largely in North and North Eastern States. For instance, a project of Indian Railways in Manipur worth ₹4,400 crore is facing a cost overrun of 338 per cent. This project is now anticipated to cost ₹19,500 crore. Similarly, nine projects in Jammu and Kashmir, seven projects in Sikkim and three projects in Arunachal Pradesh are facing cost overruns of 320 per cent, 224 per cent and 201 per cent, respectively.

The Government in its reply to Rajya Sabha said it has put in monitoring mechanisms. “The monitoring mechanism put in place by the Government to avoid the cost overrun of these projects are: periodic review of projects under PRAGATI through video conferencing by Prime Minister; rigorous project appraisal; OCMS for better monitoring; setting up of Revised Cost Committees in the Ministries for fixation of responsibility for time and cost overruns; regular review of infrastructure projects by the concerned administrative Ministries; and setting up of Central Sector Projects Coordination Committees in the States under the Chief Secretaries for removal of bottlenecks and for facilitating the speedy implementation of major projects,” the reply stated.