School toilet blitz spells windfall for state-run Hindustan Prefab | business | Hindustan Times
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School toilet blitz spells windfall for state-run Hindustan Prefab

business Updated: Sep 21, 2014 23:47 IST
M Rajendran
M Rajendran
Hindustan Times
Narendra Modi

When Prime Minister Narendra Modi urged companies to participate in constructing toilets across the country, it signalled a windfall for a little-known public sector company, Hindustan Prefab Ltd.

HPL is all set to construct and operate around 2,500 to 3,000 toilets in schools across the country for over 20 public sector companies, including ONGC, BSNL, SAIL, and IRCTC.

It is expected to ink a series of contracts next month that may translate into `200-300 crore in revenues for HPL in 2014-15 and up to `500 crore in 2015-16. HPL has been in the prefab business since 1953.

“I cannot name the PSUs, but they will be around 20 and we are very excited about the project,” Rajesh Goel, chairman and managing director, HPL, said.

Each toilet, including its disposal system, will cost `2-4 lakh, depending on the region, according to company officials. The company will also provide a two-year annual maintenance contract that will include maintenance training.

“A toilet in Leh requires different material and technology for water and disposal as compared to one in Bhuj,” said Goel. The tender for procurement of material will be done once the agreements are signed. Goel is confident that the technology and manufacturers of such products are available in India and will not require any foreign technology or manufacturers.

According to Goel, prefab is the perfect solution for such projects, which have to be completed in a limited time frame of one year, with contributions from the corporate social responsibility budget of companies, and with involvement of various state governments.

HPL is in discussions with the ministry of human resource development and rural development, the implementing agencies for the project, he said.

“We are also keenly watching the ‘Swachh Bharat’ scheme. That would give us a big opportunity as well,” said Goel.