NMC may pay Rs400cr more to new garbage operators

Nagpur: Nagpur Municipal Corporation (NMC) will be paying over Rs400 crore more to the new door-to-door garbage collection and transportation operator. The estimated price finalized for appointment of new operators is much more compared to the rate of existing operator Kanak Resources Management Ltd (KRML).
NMC on Friday commenced tendering process to appoint two operators for door-to-door garbage collection and transportation up to Bhandewadi dumping yard. As per information available from NMC health department, estimated rate for new operators has been kept at Rs2,200 per tonne.
KRML has been doing the work for last ten years. KRML’s contract ended in February. It had demanded a revision in rate for continuing the service till appointment of new operators. In February, NMC revised KRML’s rate to Rs1,436 per tonne. KRML was providing the service at Rs1,306 per tonne before February. The new rate raises a question about how NMC estimated the price for new operators.
NMC is paying an average of Rs17.23 lakh per day for lifting 1,200 tonnes garbage. As per new rates, it will be Rs26.4 lakh per day or Rs9.17 lakh more per day. The tenure of new operators will be 10 years. Thus, NMC will be paying Rs330.04 crore more at the minimum. In reality it will be even more as there are provisions for increase in rates as per revision in wholesale price index (WPI), consumer price index (CPI) and fuel rates. The quantum of garbage will also increase every year. The difference will be thus be over Rs400 crore.
As against existing system of one operator for entire city, NMC has kept provision of two operators. Each operator will be given five zones.
Justifying the new rates, NMC health officer (sanitation) Dr Sunil Kamble said scope of work for new operators has also been increased. “New operators will have to collect segregated garbage from households. They will have to collect sanitary waste separately. We have set a formula for deploying number of workers, collection tubs and vehicles in new contract that is higher than existing system. New operators will not be allowed to dump and collect garbage from localities. They will have to develop transfer stations. There are many such changes due to which estimated cost is more,” he said.
As per tendering schedule, the new operators will be finalized by August. Then, they will be given some time for mobilizing manpower and equipment.