Delays in key Central sector projects have led to steep cost over-runs, which have been pegged at Rs 1 lakh crore, according to ASSOCHAM's estimates. The report said, till March 2013, the cost over-runs had been worked out at Rs 94,800 crore in about 285 central projects. Assuming about 8-10 per cent annual accretion, the over-runs would easily exceed Rs 1 lakh crore by March 2014.
Among the various sectors, the Railways is estimated to have been most affected with maximum escalation in costs which were up nearly three times to Rs 73,500 crore, which was significantly up from the original estimates of Rs 27,900 crore in March 2013. Other sectors such as power, petroleum and steel have also witnessed steep rise in costs due to delays.
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