No takers for Rs 800-cr waste management contract

CHENNAI: The Rs 800-crore solid waste management proposal of Greater Chennai Corporation has not found any takers among both international and domestic companies. The package for segregation, collection and disposal of solid waste in four zones — Thiruvottiyur, Manali, Madhavaram and Ambattur — has not received a single bidder, necessitating re-tender process by the civic body.

Tenders were called for eight zones. While two companies showed interest for the Valasaravakkkam, Alandur, Perungudi and Sholinganallur zones, four others drew a blank, necessitating re-tender process.

The situation has raised eyebrows as several other comparable cities and metropolises in the country are attracting multinationals for waste management projects. Since it is clear that the new tender process would take a few more months to complete, Chennai corporation has extended the term of the incumbent contractor — Ramky Enviro Engineers — up to September. Ramky’s contract was slated to end in March.

When contacted, a Corporation engineer told TOI that the tenders floated in December had to be floated again this month. “The process is on,” he said, adding that since the payment was based on service and not on quantity, many were not bidding for the contracts.

However, private waste management company representatives said the clauses of the tender wererigid. “There are a lot of issues in the tenders. One of them is the civic body planning to appoint independent engineers who will supervise the work and send reports. The problem is the civic body’s decision that it will not pay the contractor if the work is found unsatisfactory. Also, the contract can be terminated without any notice. This is a major reason deterring companies. Another problem is that only 50% of the payment will be made, and the remaining 50% will be made only after the private engineers send reports,” said a waste manager, who does business in Vijayawada, Hyderabad and Pune.

“With elections round the corner and the market being unstable, companies are not willing to take any risk,” said a private waste manager. He said in cities such as Hyderabad and Vijayawada, the laws governing commercial establishments were very strict, ensuring that people did not dump waste on roads. “Unless corporation strengthens its policy, it cannot put the entire onus on the contractor,” said the representative.