There have been occasions when naval vessel construction projects of Indian Navy have had time and cost escalation, said Defence Minister Manohar Parrikar in a written reply in the House.
Major reasons for the cost escalation include delay in availability of warship grade steel, delay in design finalisation, delay in receipt of critical equipment/ technology, infrastructural constraints of the shipyards and delay in development of indigenous equipment.
Cost escalation in some major naval vessel construction projects include the P15A project which was estimated at Rs 3,580 crore as original cost but its revised cost was Rs 11,662 crore.