Bengaluru’s waste management set for private sector overhaul, raises concerns

Bengaluru Solid Waste Management Ltd (BSWML) is set to privatize the city’s waste management system by handing control to two to four private companies. These firms will handle around 5,500 tonnes of waste daily for the next 30 years, with an investment of ₹2,850 crore in infrastructure. The companies will be compensated based on tipping fees, which depend on the volume of waste collected and disposed of.

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Under this model, the private players will oversee the entire waste management process, including collection, transportation, processing, and disposal. However, concerns have been raised regarding the potential for monopolies and misuse, particularly as BSWML has floated tenders to appoint concessionaires for integrated waste management services. These tenders are divided into four packages, each covering different city areas, but legal challenges surrounding the 2023 collection and transportation tenders are currently ongoing in the high court.

The tender documents specify that BSWML will pay 75% of the approved tipping fee for collection and transportation, with the remaining 25% for processing and disposal. However, experts have warned that the penalties for underperformance are insufficient, as companies are only penalized if processing falls below 50% for six or more months. This, they argue, does not encourage efficient waste processing, as payments are primarily tied to the volume of waste handled.

The privatization is expected to significantly increase BSWML’s expenses, with the total cost of the four packages potentially exceeding ₹710 crore annually.