Chandigarh MC to hire advisory firm for drafting waste management plant proposal

The Chandigarh Municipal Corporation (MC) is working on a fresh plan for a new waste management plant after rejecting the earlier project due to financial concerns. To ensure the new plan is well-structured, the MC is considering hiring a professional advisory firm.

Advisory firm to guide new plan

Last week, the General House of the MC canceled the previous waste management project, which was meant for Dadumajra, over concerns about its high cost and possible financial irregularities. Now, the MC is looking for a “transaction advisory” firm to help create a better proposal. The firm will provide expert advice on structuring the project, handling finances, and choosing the right technology for waste management.

Earlier this year, the MC approached NTPC’s Vidyut Vyapar Nigam (NVVN) Limited to set up a waste processing plant. However, they have not received a response. Meanwhile, on March 28, the Administrative Staff College of India (ASCI) in Hyderabad sent a proposal offering assistance in improving Chandigarh’s waste management system.

The MC plans to consult the High Power Committee (HPC) to finalize the technology for the new waste plant. The committee will also decide whether NVVN can assist in setting it up. Additionally, the MC will request the committee to appoint ASCI as an advisor to guide the city’s waste management system.

In 2022, the UT administrator formed the HPC to determine the best technology for the Integrated Solid Waste Management project. The committee includes officials from the Chandigarh administration, experts from the National Environmental Engineering Research Institute (NEERI), Indian Institute of Technology (IIT) Ropar, the mayor, and councillors.

After reviewing HPC’s recommendations, IIT Ropar prepared a proposal, which NEERI approved. This proposal was then cleared in a General House meeting on June 6, 2023, and tenders were invited.

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Previous project faced opposition

The Dadumajra waste plant was designed to handle 600 metric tonnes (MT) of waste daily, including dry, wet, and horticultural waste. The project was planned for 17 years—two years for construction and 15 years for operation and maintenance.

However, when the project was reconsidered in a recent House meeting, the lowest bidder (L1 agency) quoted a price that was too high. Due to opposition from councillors across party lines, the tender was ultimately canceled. The MC then decided to use Waste-to-Energy (WTE) technology for processing solid waste.

BJP councillor Saurabh Joshi pointed out issues in the tendering process. He said that the selected company, M/s Hindustan Waste Treatment Private Limited, initially quoted ₹4,950 per MT but later reduced it to ₹3,500 per MT. He questioned why the company would take a ₹1,500 crore loss over 17 years, suggesting possible manipulation to benefit certain firms.

Joshi also noted that the firm refused to collect horticultural, medical, and hazardous waste, which meant the MC would have to manage these separately despite spending a large amount on the plant. He added that the projected waste figures did not match the actual figures, indicating possible vested interests.

Until a new waste management plan is approved and implemented, the MC will continue to handle daily garbage using its existing waste processing facilities.