The Karnataka Cabinet approved a ₹39,437 crore, 30-year solid waste management contract for Bengaluru, awarded to Delhi MSW Solutions Ltd (a subsidiary of the Hyderabad-based Ramky Group). The contract tasks the vendor with processing 5,200 tonnes of the city's daily waste.
Key Details of the Mega Deal:
- Scope & Duration: The company will single-handedly manage waste for both North and South Bengaluru packages for 30 years.
- Financial Escalation: The approved cost is ₹6,389 crore higher than initial estimates. It includes a 5% annual price increase.
- Finance Department Warnings: The state's Finance Department had strongly objected to the contract. They argued for capping price escalation at 2.5%, shortening the term to 10 years, and avoiding a 30-year monopoly lock-in with a single vendor.
The decision has sparked significant debate, with critics raising concerns about the high costs and lack of backup if the vendor underperforms. You can read more about the project's details and the debate it has generated on the Deccan Herald Opinion portal or the initial Moneycontrol Report.
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