Mumbai: Standing Committee Rejects ₹714-Crore Waste Management Tender Again; BMC May Extend Existing Contract

Mumbai, June 6: Facing continued resistance from corporators, the BMC administration's proposal to award a Rs 714-crore, seven-year waste management contract for Byculla, Parel, Sion and Wadala to the second-lowest bidder was rejected for the second time by the Standing Committee on Friday.

The proposal was again referred back for review amid persistent questions over the justification for overlooking the lowest bidder. With the deadlock persisting, the civic body may now have little option but to extend the contract of the existing operator.

The lowest bidder, Metro Waste Handling Pvt. Ltd., quoted 15.64% above the civic estimate for waste management services across three wards. However, the administration bypassed it, recommending the second-lowest bidder, citing its policy of limiting multiple contracts to a single firm to safeguard work quality.

The move triggered strong objections from the Standing Committee, which last month had sent back the proposal to the administration. The administration once again brought the proposal for approval at the Standing Committee on Friday.

Corporators raise objections

Questioning the administration's incomplete responses, Leader of the House Ganesh Khankar moved a supplementary motion seeking reconsideration of the tender proposal.

During the discussion, Shiv Sena (Shinde faction) corporator Yamini Jadhav alleged billing irregularities in the Byculla waste segregation project, while NCP corporator Dr Saeeda Khan proposed relocating and modernising the Kurla waste transfer station. Following the debate, Standing Committee Chairman Prabhakar Shinde referred the proposal back for reconsideration.

As the proposal has been referred back for reconsideration for a second time, the BMC will have to extend the contract of the existing waste collection agency in the three wards.

Officials expressed concern that the ageing fleet, already prone to breakdowns, could face further disruptions during the monsoon. With old vehicles continuing in service until a new contract is finalised, delays in garbage collection may increase, raising fears of waste accumulation in the affected areas.

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New service-based model

Under the new service-based model, a single agency will oversee both waste collection and transportation using better-designed, high-capacity, colour-coded vehicles — 10–15% of which will be electric. The agency will also be responsible for the maintenance, movement and handling of waste bins, ensuring a more streamlined and efficient system.

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