New tenders break contractor mafia
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It appears that the BBMP has managed to break the garbage contractors' monopoly that was deep rooted in the BBMP, by relaxing the tender conditions and allowing fresh contractors to apply for solid waste management (SWM) in the garden city. Hitherto, SWM in BBMP was handled by a cartel of contractors led by Gopinath Reddy and others, and they had a final say in all garbage contracts. They ensured that the tender conditions favoured them and allowed no new players, said sources in the BBMP. Hardly any of the 48 old contractors have participated in the tender process, signalling the end of the contractors' mafia.
Following the relaxation of certain conditions in the tender, garbage contractors have quoted tender prices at least 30 to 40 per cent lower than in previous years. This will reduce the financial burden on the BBMP, said BBMP special commissioner K. R. Niranjan. The BBMP was spending a whopping `400 crore annually on waste management. The tenders are being evaluated. After the evaluation, the new tenders will be placed before the Standing Committee for Health for approval and subsequently before the coming BBMP Council meet, Mr Niranjan said.
Sources in the BBMP said that the old contractors probably thought that no new contractors would participate in the tender process and the government and the BBMP would have to turn to them again. The response for the tenders has shocked the 'mafia' too. They might try and get hold of the garbage tenders in some way or they might extend external support by providing their trucks and machinery to the new contractors, added sources. Whatever they do, the new contract has succeeded in breaking the monopoly of these few contractors who held the city to ransom.
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