Bengaluru Solid Waste Management Ltd (BSWML) plans to hand over control of the city’s waste management to two to four private companies, responsible for handling approximately 5,500 tonnes of waste daily over the next 30 years. These private players, who will invest Rs 2,850 crore in infrastructure, will be compensated based on tipping fees, which are determined by the volume of waste collected and disposed of.
Each company will oversee the entire waste process, from collection and transportation (C&T) to processing and disposal (P&D). However, this model has raised concerns about potential misuse and the creation of monopolies. Earlier this month, BSWML floated tenders for appointing concessionaires to execute integrated waste management services, including door-to-door collection. These tenders were divided into four packages covering different city areas, but there are ongoing legal challenges in the high court regarding the 2023 C&T tenders.
The tender documents specify that BSWML will pay 75% of the approved tipping fee for C&T services, with the remaining 25% allocated for processing and disposal. A key requirement is that no more than 20% of the total waste at processing facilities should end up in landfills. However, experts have pointed out that the penalties for underperforming are not strong enough, as firms are only penalized if processing falls below 50% for six or more months in a year. This system, they argue, does not incentivize optimal waste processing since the bulk of the payment is tied to the amount of waste handled, not the efficiency of its processing.
The proposed model will significantly increase BSWML’s expenses. The total cost of the four packages could exceed Rs 550 crore annually for C&T services, with another Rs 160 crore for P&D, potentially driving up project costs if the private firms fail to meet processing targets.
The new tender process also brings large players into the picture, replacing hundreds of small contractors who have managed waste for decades. Some private firms are even able to bid for multiple packages, leading to the possibility of just a couple of companies controlling the entire waste management system. Although the BSWML claims the project will be economically viable for bidders, experts have raised concerns about the long payback period—estimated at 12 to 18 years—and the potential for monopolistic control.
Kalpana Kar, a solid waste management expert, emphasized that payments should be tied to the total waste processed, not the volume collected. She also criticized the large-scale tender approach, noting that it contradicts high court rulings that recommended dividing packages into smaller chunks for better management. “Smaller packages are easier to handle than large conglomerates,” she said.
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