Archive · 3 Sep 2025
Infrastructure Project Halts Decline, New Project Additions Slow
In Q1 FY26, fewer infrastructure projects were stopped or canceled, a positive sign of improved governance.
However, the amount of new projects started decreased significantly.
Experts say this shift indicates the government is now focused on finishing projects already underway.
The power sector saw both the most new projects and the highest number of halts/terminations.
The government allocated a large capital expenditure in the budget, and is now streamlining approvals and improving financing to ensure projects run smoothly.
Infrastructure projects worth ₹8,603.54 crore were halted/terminated in Q1 FY26, a 44.6% decrease.
New infrastructure projects worth ₹51,155.24 crore were added in Q1 FY26, a decrease of nearly 68%.
The power sector had the highest number of both new project additions and halts/terminations.
The government is shifting focus from announcing new projects to completing existing ones.
The Union Budget 2024-25 included a record ₹11.11 lakh crore capital expenditure allocation for infrastructure.
- Who
- Ministry of Statistics and Programme Implementation (MoSPI)
- What
- Decline in halted/terminated infra projects; fewer new projects added in Q1 FY26.
- When
- Q1 FY26
- Where
- Not specified
- Why
- Shift to completing existing projects, improved governance, and better project planning.
Government
Industry Watchers
Focus
Government
Completion of ongoing projects.
Industry Watchers
Prioritizing execution, resolving bottlenecks and improving project viability.
- Projects Terminated/Halted (Q1 FY26)
- ₹8,603.54 crore
- Decline in Terminations
- 44.6%
- New Projects Added (Q1 FY26)
- ₹51,155.24 crore
- Drop in New Project Value
- Nearly 68%
- Power Sector New Investment
- ₹31,188 crore
- Union Budget 2024-25 Capex
- ₹11.11 lakh crore
Sources
Private capex to contract in FY26 led by logistics, real estate and trade
Fiscal deficit widens sharply in early FY26: Union Bank of India
Unincorporated establishments rise to 7.94 crore, employment crosses 13 crore mark
New infra project addition slow in Q1 FY26 as Centre shifts focus to completion of existing projects
