One firm, five contracts in Bengaluru: Questions over Rs 2.2K crore waste deal

Bengaluru: The Bengaluru Solid Waste Management Ltd (BSWML) has awarded all contracts related to the collection and transportation of the city’s construction and demolition (C&D) waste to a single private firm, raising concerns about favouritism. 

Chaitra Civil Ventures LLP was the sole bidder for three key tenders, despite the presence of multiple transport service providers in the city. It also secured two additional contracts for processing construction debris. 

The five contracts — the government-owned company's first long-term agreements of this scale — are valued at a staggering Rs 2,227 crore over a 15-year period. This translates to Rs 148.5 crore annually. 

While the initiative aims to reduce illegal dumping and keep the city’s lakes, drains and public spaces clear of debris, citizen groups are sceptical. They argue that assigning the entire responsibility to a single agency is impractical given the volume of waste generated citywide. They also question the government's commitment to decentralised governance, noting the irony of centralising such a critical civic function. 

A senior BSWML official said there is an element of risk involved in the project as the private agency is responsible for collecting the service fee from waste generators.

Earlier this year, BSWML had floated five tenders related to C&D waste management. Three of these were for the collection and transportation of debris to existing processing plants in Kannur and Chikkajala. The other two covered end-to-end operations, including processing of debris. 

Although some tenders attracted up to five bidders, BSWML disqualified most of them on technical grounds. End result? All the contracts were awarded to a single agency, triggering questions. 

The senior BSWML official, however, justified the decision. "We had floated the tenders in the e-procurement portal. What can we do if the response is low." 

Sources told DH that Chaitra Ventures initially quoted around 69% above the estimated cost. However, following negotiations, it revised down its bid to align closely with the BSWML’s estimates. 

A retired BBMP official suggested that the contracts should have been split between collection/transportation and processing, given their distinct technical requirements.

"Around 70% of the cost pertains to transportation. If that portion had been tendered separately, more players would have likely participated, encouraging competitive pricing. This entire process is rigged," he alleged. 

C&D waste

Five contracts three for collection, transportation of debris to existing processing plants 2 end-to-end operations, including processing of debris  Value Rs 2,227 crore over 15 years Rs 148.5 crore annually  .

We had floated the tenders in the e-procurement portal. What can we do if the response is low - a senior BSWML official.