New Delhi: Government Friday said that as many as 179 projects being monitored by it reported cost overrun of around Rs 1.23 lakh crore during the 11th Five-Year Plan as on March 31, 2012.
"As on March 31, 2012, 555 projects (worth Rs 150 crore and above) were on-going, out of which 179 projects reported cost overruns", Statistics Minister Srikant Kumar Jena said in a reply to the Rajya Sabha.
According to the statement laid in the House by the minister, total cost overrun of these 179 projects was Rs 1.23 lakh crore.
The minister said, "The major reasons for cost overruns are under estimation of original cost, change in rates of foreign exchange and statutory duties, escalation in cost of land, high cost of environmental safeguards and rehabilitation measures, inflation and delay in projects."
The details provided by the minister reveal that the cost overrun of projects in railways sector was Rs 69,551.81 crore followed by Rs 15,886.71 crore and Rs 15,113.80 crore in petroleum and power sectors.
The cost of projects escalated by Rs 6,187.54 crore, Rs 5,272.90 crore, 4,838 crore in steel, urban development and atomic energy sectors respectively.