₹2.11 Lakh Crore Cost Overrun on 25 Mega Projects, Paimana Portal Report Reveals

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The central government's Paimana Portal, in its October 2026 report, has revealed that 1,853 ongoing infrastructure projects have seen a total cost overrun of ₹3.22 lakh crore. Of this, just 25 mega projects account for ₹2.11 lakh crore, or 65% of the total increase. The report states that this amount could have built over 4,200 schools at ₹50 crore each, or more than 1,400 hospitals at ₹150 crore each.

The worst-affected project is the Hubli-Ankola rail line in Karnataka, which was to be completed by March 2005 but now has a revised target of March 2030 — a delay of 25 years. Hydropower projects such as Subansiri and Tapovan-Vishnugad are over 16 years behind schedule. The report notes that 1,360 projects are on time or within two years of delay, indicating that the problem is concentrated in large, complex projects.

According to Harion Sharma, former chief of the PWD, delays are often caused by changes in government priorities and funding issues when a new government takes over, though such instances are now limited. The report says that since the 2013 land acquisition law ensured fair compensation, opposition has reduced. Competitive tendering has enabled many projects to be built at 10-15% below their approved budgets, and a multi-level monitoring system is expected to further reduce delays and cost overruns.

What is the 2013 land acquisition law?

The Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 replaced the colonial-era Land Acquisition Act of 1894. It came into force on 1 January 2014. The law mandates higher compensation, up to four times the market value in rural areas, and requires consent from at least 70% of affected families for public-private projects and 80% for private projects. It also includes comprehensive rehabilitation and resettlement provisions for those displaced.

What is the Paimana Portal?

The Paimana Portal is a central government online platform that monitors the progress and cost of infrastructure projects across ministries. It provides real-time data on project timelines and cost overruns, and its periodic reports are used to assess the health of the country's infrastructure pipeline.

What are the causes and effects of the delays?

The report and experts point to land acquisition, environmental clearances, and policy changes with new governments as key causes of delay. The 2013 Land Acquisition Act has reduced opposition by ensuring fair compensation, but large projects still face administrative hurdles. The opportunity cost is significant: the ₹2.11 lakh crore overrun on 25 projects could have built over 4,200 schools or 1,400 hospitals. However, the report also notes that competitive tendering has enabled many projects to be built at 10-15% below their approved budgets, and 1,360 projects are on time or within two years of delay.

What is the next step to reduce delays?

The report indicates that a multi-level monitoring system is expected to further reduce delays and cost overruns in the future. Projects are now executed in two phases: first, land acquisition and environmental/forest clearances are obtained, and then construction begins, which is intended to streamline execution.