Sanskrit OCR is developed by a Sanskrit scholar from Germany - Dr. Oliver Hellwig of Department for Languages and Cultures of Southern Asia, Freie Universität Berlin. The official website is in German. The interface of earlier versions of the software was also in German, but later versions have an English interface too.
Dr. Hellwig is currently developing a specialized Hindi OCR, which has recognition rates of about 99.5% on good documents and hope to make this program available by the end of the year. 
- A New Tool for Translating Ancient, Flowing Script (Newyork Times)
- OCR for Sanskrit
- Sanskrit and OCR
- Sanskrit and Hindi OCR