New Delhi, Nov 16 (IANS): The government Wednesday revised upward the cost estimate of the Assam Gas Cracker project to Rs.8,920 crore from the earlier Rs.5,460.61 crore due to rise in prices of input and other costs.

The Cabinet Committee on Economic Affairs headed by Prime Minister Manmohan Singh approved the revised cost.

The project, scheduled to be completed by the end of 2013, will be funded by capital subsidy of Rs.4,690 crore. It will also have Rs.2,961 crore debt and Rs.1,269 crore equity.

The cabinet had in April 2006 approved the earlier estimate.

However, the project has suffered from time and cost overruns due to various reasons including time escalation, increase in infrastructural requirements and construction cost, labour unrest, prolonged monsoon and inadequate availability of skilled manpower at the site.

The project is considered crucial for the development of Assam and other states in the northeast.

"The project is in its fifth year of execution. Requisite land for the complex has been acquired and necessary land development is also in the completion stage," an official statement said.