New Delhi: As many as 205 energy infrastructure projects across India are grappling with significant cost overruns amounting to ₹1.34 lakh crore, according to the latest data from the Ministry of Statistics and Programme Implementation (MoSPI). The report highlights delays and rising expenses across critical segments, including oil and gas, electricity generation, transmission and distribution (T&D), and energy storage.
Majority of Delayed Projects in Oil, Gas, and T&D Sectors
Out of the total 205 projects, 154 belong to the oil and gas and power transmission and distribution sectors, which form the backbone of India’s energy infrastructure.
At the end of September 2025, the data revealed:
- 89 oil and gas projects were delayed,
- 65 transmission and distribution projects were facing time overruns,
- 35 electricity generation projects, and
- 16 energy storage projects were behind schedule.
These delays have inflated the total original project cost from ₹8.50 lakh crore to a revised estimate of ₹9.84 lakh crore.
Oil & Gas and Power Generation Projects Lead in Cost Escalation
The lion’s share of the cost overruns comes from oil and gas and power generation projects, together accounting for ₹7.08 lakh crore of the revised project costs.
- Oil and Gas Sector: The revised cost now stands at ₹3.78 lakh crore, up significantly from initial estimates.
- Power Generation Projects: The revised figure is ₹3.29 lakh crore, reflecting delays in several large-scale hydro and thermal projects.
- Transmission & Distribution Projects: The revised cost has reached ₹1.56 lakh crore, while
- Energy Storage Projects: have seen costs climb to ₹1.20 lakh crore.
Analysts suggest that factors such as land acquisition challenges, supply chain disruptions, environmental clearances, and financing bottlenecks continue to plague large-scale energy infrastructure in the country.
HPCL’s Rajasthan Refinery Tops the List of Cost Overruns
Among the delayed projects, Hindustan Petroleum Corporation Limited’s (HPCL) Rajasthan Refinery has recorded the largest cost overrun of ₹36,330 crore. The refinery’s original cost was pegged at ₹43,129 crore, but it has now escalated to ₹79,459 crore.
Other major projects also facing steep overruns include:
- Bharat Petroleum Corporation Limited’s (BPCL) Ethylene Cracker Project at Bina Refinery, which also involves expansion of refining capacity from 7.8 million metric tonnes per annum (MMTPA) to 11 MMTPA.
- Indian Oil Corporation Limited’s (IOCL) Panipat Refinery Expansion Project, which has seen a cost escalation of ₹1,598 crore.
- In the power sector, the Dibang Multipurpose Project in Arunachal Pradesh is among the delayed hydro projects encountering time and cost overruns.
Delays Could Impact Energy Security and Economic Goals
Experts warn that persistent cost escalations and project delays in India’s energy sector could affect timelines for achieving energy security and sustainability targets, including commitments toward renewable integration and emission reduction.
The MoSPI report underscores the need for stronger project monitoring, transparent reporting mechanisms, and faster clearances to minimize financial losses and ensure timely completion.
