Rising costs hit Centre’s sanitation scheme

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New Delhi, Aug 25: Just as several flagship development projects like the construction of rural roads have been hit by rising input costs, the government has been forced to take a hard look at its cost estimates for building toilets for families below the poverty line in rural India. Soaring steel and cement prices have already hit the Centre’s toilet targets under the total sanitation campaign (TSC) in recent months.

In response, the ministry of rural development, which is the nodal agency for the implementation of TSC, has increased its cost estimates for constructing toilets to Rs 2500 per unit, from Rs 1500 per unit, that was fixed two years back. In order to ensure that the increased cost doesn’t hurt beneficiaries, the Centre and the states have decided to share the burden

So even as contribution from beneficiaries would continue to be at the current level of Rs 300 per unit, Central financial assistance for toilets has been hiked to Rs 1500 per unit from Rs 900. The share of state governments has been raised to Rs 700 from Rs 300, fixed in 2006.

Launched in 1999, the TSC has helped increase in sanitation cover to the rural poor. According to official data, the percentage of rural households with access to toilets has increased from 21.9% to only 55.56% in July 2008. Since 1999, more than 4.6 crore toilets have been constructed for rural poor families. Through TSC, the Centre is looking at constructing an additional 4.5 crore toilets by 2012 and achieve total sanitation.

According to a senior rural development ministry official, high costs of basic construction materials like cement and steel, has forced the government to revise the norms. During January 2006 and May 2008, prices of cement and steel have risen more than 80%. “Due to high inputs costs, the construction of toilets were slowing down,” the rural development ministry official told FE .

In case of cement, the prices have increased from Rs 150 per bag in 2006 to Rs 260 per bag now. According to the Cement Manufacturers Association, the steepest increase came last year. A bag of cement, which cost less than Rs 200 till January 2007, went up to Rs 245 in August 2007

Steel prices have doubled in the last two years, increasing from Rs 22-28 per kg in 2006 to Rs 45-50 per kg at present.