Huge Scope for Privatisation of Solid Waste Management
COMMUNITY RESISTANCE, LACK OF SPACE AND TECHNICAL KNOW-
HOW & PAUCITY OF FUNDS ARE
MAJOR OBSTACLES, REVEALS FICCI SURVEY
NEW DELHI, February 16, 2007. Even as Urban Local Bodies strive for
privatization of their Solid waste management (SWM) activities, they are up against
major hurdles such as resistance from the community for setting up solid waste
treatment and disposal facilities, lack of appropriate space for setting up SWM
facility, dearth of funds, and lack of technical know-how, according to a FICCI
survey on Scope of Privatisation of Municipal Solid Waste in India.
The survey targeted 35 cities with a population of more than 1 million (Census
2001). The 25 cities that responded to the survey are: Agra, Ahmedabad, Asansol,
Bangalore. Chennai, Coimbatore, Delhi, Hyderabad, Indore, Jabalpur, Jaipur,
Jamshedpur, Cochin, Kolkata, Ludhiana, Madurai, Meerut, Mumbai, Nagpur, Nasik,
Patna, Pune, Rajkot, Surat and Varanasi.
The FICCI survey reveals that a majority of the cities (23 out of 25) surveyed have
already engaged private sector companies in their waste management activities.
However, in most cases the extent of privatization is only partial, i.e either not all of
the SWM activities have been privatized or privatization has been implemented in
only a few zones of the city. Most of the corporations having opted for private
contracts (fee based services).
It is interesting to note that several ULBs have received financial assistance for
SWM from Government (especially under schemes like JNNURM and 12 th Finance
Commission), Bilateral and Multilateral Institutions, in terms of grants, loans or
subsidies. Further, several ULBs have indicated other sources of revenue generation
to support SWM activities, such as collection of user fees from residents and/ or
hotels and marriage halls, waste management tax (refuse removal charges, trade
refuse charges), octroi duty and property tax including conservancy tax, toll tax, tah-
bazari, parking fees, advertisements, challans/ penalties against littering, recovery
for removal of encroachment, notification charges, bulk garbage collection charges,
buy back arrangement for recovered or recycled products / by products from waste
treatment.
Ahmedabad, Jamshedpur, Ludhiana, Meerut, Mumbai and Hyderabad have indicated
the highest solid waste collection efficiency, on the basis of waste generation and
collection figures provided by the ULBs. On the basis of number of households from
where waste is collected, Nagpur and Nasik have the highest door-to-door waste
collection efficiency followed by Surat, Hyderabad and Kolkata.
The survey reveals that Delhi has the highest per capita expenditure on solid waste
management (Rs 431) followed by Mumbai (Rs 428), Jaipur (Rs 301), Chennai
(Rs 295) and Ludhiana (Rs 258).
Some of the other survey findings are:
Door to door waste collection, street sweeping and transportation of waste
have so far been the most common activities that have been privatized.
There is a huge potential for private sector participation in treatment and
disposal activities, which has so far not been tapped adequately due to
contractual and technological constraints.
Among waste treatment options, composting1 and vermicomposting2 have
been the most popular methods among the cities surveyed. The ULBs are
also looking at pelletisation3 and Biomethanation4 as treatment options for
near future.
Several ULBs have received financial assistance for SWM from
government, bilateral and multilateral institutions, in terms of grants, loan or
subsidies.
1
Composting refers to treatment of waste through aerobic decomposition of
biodegradable organic matter.
2
Vermicomposting is a treatment method wherein certain species of earthworms are
used to break down the organic matter in solid waste.
3
Pelletisation involves conversion of solid waste into refuse derived fuel (RDF)
pellets that can be used to generate electricity.
4
Biomethanation involves generation of methane by digesting organic waste (in a
slurry form) by methanogenic microbes, usually in an anaerobic environment.
Survey Highlights:
Solid waste management has been partly privatized in 23 out of the 25 cities
surveyed. Cochin and Pune are the only two cities surveyed that have not
privatized their SWM activities.
19 out of 25 cities surveyed have currently adopted the private contract (fee
based services) model for SWM contracts.
Waste collection (from door-to-door as well as street sweeping) and
Transportation are the most privatized activities in the cities surveyed. Waste
transportation (18 cities), door-to-door collection (17 cities) and street
sweeping (17 cities) have been privatized in most of the cities surveyed.
Composting (10 cities) is the most popular among the existing treatment
options for municipal solid waste, followed by vermicomposting (5 cities).
Pelletisation (9 cities) and biomethanation (5 cities) have also been preferred
as treatment options for future.*
All the cities surveyed still use open dumps as a disposal option for their
MSW. Cities such as Ahmedabad, Bangalore, Pune and Surat have already
installed secures landfills whereas others such as Cochin, Coimbatore,
Hyderabad, Ludhiana, Mumbai, Delhi, Indore, Jaipur, Jabalpur, Jamshedpur,
Kolkata, Chennai, Jamshedpur, Coimbatore, Rajkot, and Patna Have already
initiated the process of establishing secured landfills.
The primary bottlenecks indicated in the survey are resistance from the
community for setting up solid waste treatment and/or disposal facilities (15
cities), lack of appropriate space for setting up SWM facility (11 cities), lack
of funds (11 cities), and lack of technical know-how for carrying out SWM
activities (11 cities).
Cities like Bangalore, Mumbai, Jaipur and Nagpur have the maximum
number of activities privatized.
Cities such as Coimbatore and Asansol have evinced a possibility of
privatizing all solid waste management activities in future.
In cities like Pune (50%) and Cochin (86.42%), the collection efficiency is
considerable although waste management has not been privatized in these
cities. However, the figures also indicate that although the current models
being followed by these cities are yielding results, there is still a scope for a
rise in collection efficiency and hence privatization in waste collection in
these cities.
17 out of 25 cities surveyed have introduced door-to-door collection. Cities
such as Nagpur, Nasik, Surat and Hyderabad have door-to-door collection
throughout the cities in all the zones/ wards. Nagpur, Nasik and Bangalore
claim 100% collection efficiency in terms of the number of households from
where waste is collected while Surat and Hyderabad have indicated an
efficiency of 80% and 75% respectively.
Of the cities surveyed, the Asansol Municipal Corporation allocates the
highest percentage of its overall budget to SWM related activities (44.7%)
followed by Agra (30.39%), Patna (29.36%) and Varanasi ( 27.8%)
Delhi has the highest per capita expenditure on SWM (Rs 431) followed by
Mumbai (Rs 428) and Jaipur (Rs 301). Cities such as Ahmedabad, Chennai,
Ludhiana, Kolkata, Pune and Varanasi also have a relatively high per capita
SWM expenditure (more than Rs 200).
Manpower deployment for SWM is highest in Delhi (3.5 per 1000
population) and Mumbai (3.4 per 1000 population). Other cities surveyed
such as Coimbatore, Madurai and Nasik also have a manpower deployment
figure equal or above 3.0 per 1000 population.
15 of the cities surveyed have received or are in the process of receiving
grants/ subsidies from Central Government, State Government or financial
institutions like ADB, for handling part of their waste management expenses.
13 of the cities surveyed have indicated additional sources of collecting
revenue for waste management. These sources include user fees, waste
management tax, buy back arrangements from recycled waste etc.
OVERALL CITY RATINGS ON SWM
Solid waste collection efficiency: Ahmedabad, Jamshedpur, Ludhiana,
Meerut, Mumbai and Hyderabad have indicated the highest solid waste
collection efficiency, on the basis of waste generation and collection figures
provided by the ULBs. On the basis of number of households from where
waste is collected, Nagpur and Nasik have the highest door-to-door waste
collection efficiency followed by Surat, Hyderabad and Kolkata.
Per capita expenditure on solid waste management: Delhi has the highest
per capita expenditure on solid waste management (Rs 431) followed by
Mumbai (Rs 428), Jaipur (Rs 301), Chennai (Rs 295) and Ludhiana (Rs 258).
Manpower deployment for solid waste management: Delhi has the highest
manpower deployment for solid waste management (3.5 per 1000 population)
followed by Mumbai (3.4 per 1000 population), Madurai (3.2 per 1000
population), Coimbatore (3.0 per 1000 population) and Nasik (3.0 per 1000
population).
Treatment and Disposal: Among treatment and disposal options, composting
has been identified as the most preferred treatment method, followed by
vermicomposting, incineration (mainly for biomedical waste) and pelletisation.
Most privatized SWM activities: Waste transportation, Door-to-door waste
collection, street sweeping, secondary storage and disposal are the top five
activities that have been privatized.
* Preferred treatment technologies for MSW (existing and planned for
future)
Treatment Existing Planned (introducing or
Procedures expanding existing treatment
process)
Composting Mumbai, Delhi, Nasik, Coimbatore, Delhi, Kolkata, Asansol,
Bangalore, Kolkata, Ahmedabad, Madurai, Jabalpur, Chennai,
Jamshedpur, Rajkot, Pune Coimbatore, Pune, Meerut,
Nagpur, Hyderabad, Patna,
Jaipur, Indore, Surat, Mumbai
Vermicomposting Mumbai, Indore, Pune, Nagpur, Jabalpur, Jamshedpur,
Bangalore Coimbatore, Pune, Mumbai
Incineration Varanasi (BMW), Indore, Hyderabad Kolkata, Pune
Biomethanation Mumbai Delhi, Mumbai, Nasik,
Jabalpur, Pune
Pelletisation Rajkot, Hyderabad Delhi, Varanasi, Nasik, Jaipur,
Ahmedabad, Chennai,
Coimbatore, Pune, Hyderabad,
Bangalore, Surat, Cochin
Gasification Delhi