Pune: The ongoing waste bioremediation efforts at the Fursungi and Uruli Devachi garbage depots are set to become more costly than anticipated, with the Pune Municipal Corporation (PMC) likely to pay an additional ₹13.5 crore for the project.
A tender for bioremediation recently issued by the PMC has attracted bids far exceeding market rates, raising concerns among officials about the financial viability of the project.
The PMC has been conducting bioremediation of 53 lakh metric tons of waste at the two depots as per directives from the National Green Tribunal (NGT). To date, 21 lakh metric tons have been processed through tenders issued in 2016 and 2021.
For the remaining 10 lakh metric tons, the PMC set the tipping fee at ₹844 per ton for the new tender. However, the lowest bid, submitted by Bhumi Green Energy, came in at ₹979 per ton, which is ₹135 higher than the pre-determined rate.
Experience Condition Limits Competition
A major factor driving up the costs is a specific condition in the tender requiring bidders to have experience in disposing of 2 lakh tons of refuse-derived fuel (RDF).
This condition has restricted eligibility to a limited number of contractors, curbing competition and leaving only two contractors eligible for the project.
Despite complaints from some parties that this requirement would lead to higher costs for the PMC, the condition was upheld. Consequently, Bhumi Green Energy and Zigma Global Environ Solutions Pvt. Ltd. were the only contractors eligible to bid for the project.
Comparisons with Other Cities Raise Concerns
Officials have raised concerns about the high rate quoted by Bhumi Green Energy, especially in comparison to other cities. In Sangli, the rate for bioremediation is ₹420 per ton, while in Lucknow, it is ₹612 per ton.
The PMC has deemed the bid significantly overpriced and has formally requested Bhumi Green Energy to justify its rates and provide a detailed breakdown of costs. The contractor has been given seven days to revise the rate or risk losing the contract.
Impact on PMC’s Budget
Should Bhumi Green Energy fail to reduce its quoted price, the PMC will be forced to pay an additional ₹13.5 crore for the bioremediation of 100 tons of waste. PMC officials have stated that such a significant cost overrun would strain the municipal budget and potentially divert funds from other critical projects.
The contractor has until the end of the week to submit a revised proposal, and the outcome will determine whether the PMC can move forward with the project at a more reasonable cost.
Tenders, Contractors, and Tipping Fees:
2018:
Bhumi Green Energy: ₹647 (awarded the contract)
Save Environment: ₹678
SMS Limited: ₹936
2022:
Bhumi Green Energy: ₹844 (awarded the contract)
Zigma Global Environ Solutions Pvt. Ltd.: ₹920
2024:
Bhumi Green Energy: ₹979 (likely to be awarded the contract)
Zigma Global Environ Solutions Pvt. Ltd.: ₹1,220
