Public enterprises incur heavy expenditure on social overheads like townships, schools, hospitals, etc. In many cases such establishment expenditure amounted to 10 pe cent of the total project cost. Recurring expenditure is required for the maintenance of such overhead and welfare facilities. Hindustan steel alone incurred an outlay of Rs. 78.2 crores on township. such amenities may be desirable but the expenditure on them should not be unreasonably high.
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