Garbage contract in Ahmedabad crosses ₹3,400 crore

Updated: Mar 19th, 2024

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The standing committee of Amdavad Municipal Corporation (AMC) passed a first-ever 10-year-long garbage collection and sanitisation contract of ₹3,400 cr.

This is the first time in history that a long-term tender of 10 years has been presented for solid waste collection. Moreover, it was presented directly in the standing committee, and not with the health and solid waste department first, reportedly to avert any possible controversy.

Not only this, the annual expenditure of ₹300 crore for cleaning contractors in previous years has increased to ₹340 crore a year and an additional condition of 5% a year has been placed in the tender.

A few questions arise over the decision taken by the AMC.

(1) The term of elected representatives is five years. Even if the new representatives want to, they cannot make any changes to the 10-year tender.

(2) When the central government issues new rules for plastic waste, medical bio-waste, etc. every six months, will it be possible to get tender coordination for such a long period?

Apart from this, the number of contractors has been reduced from 12 to 4.

Earlier contractors had to go up 55 metres high on the garbage piles and dump the waste. Now that system has been done with, and still, the cost is increasing. 

With the same department, earlier the trommel-disposal machines were rented at charges higher than the market rate.

When this came to light, the commissioner cancelled the tenders and re-issued the tender at half the price. Because of this, the corporation saved ₹150-200 crore.

Also, a number of old set-up systems have been dismantled, and the old containers, dumpers, and other equipment lie inoperational, according to sources.

Some high officials and leaders have shown deep interest in arranging for this tender to be passed directly in the standing committee, suggested the hushed discussions in the AMC circles.

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