The Ahmedabad Municipal Corporation is preparing to award an outsourcing contract worth about Rs 5 crore for 180 peons without inviting a fresh tender, according to a report by Gujarat Samachar – Ahmedabad. A proposal for the direct allocation is scheduled to be placed before the civic body’s Standing Committee on Wednesday, October 21, 2026.
The proposal would divide the one-year service requirement among three agencies—Ultramodern, Clean India and Shashwat Safalya Pvt Ltd—with each responsible for supplying 60 peons. The agencies would also be exempted from submitting a contract agreement and depositing security money, according to the report.
The civic administration has cited a shortage of peons in different departments despite the AMC having more than 15,000 employees. Under the proposed arrangement, nine workers from each agency would be assigned to the secretary’s office, while the remaining 51 workers would be deployed across other departments. Work orders and payments would be handled by the concerned departments.
The proposed arrangement is based on a resolution approved by the AMC’s Health and Solid Waste Management Committee on August 22, 2025. That earlier resolution covered two separate outsourcing proposals: 164 peons for two years at a cost of Rs 6.13 crore and 288 peons for two years at a cost of Rs 16 crore.
The figures in the earlier resolution work out to an annual cost of about Rs 2.77 lakh per peon, or approximately Rs 23,150 a month. The report, however, notes that questions have been raised over how much of this amount reaches the workers as wages. Peons are generally discussed as receiving monthly salaries of about Rs 12,000 to Rs 15,000, while allegations have been made that the balance remains with the agencies. The report does not establish the actual wage paid under the proposed contract.
The three agencies named in the new proposal were also included in the earlier resolution. The Standing Committee will now decide whether to approve the proposed allocation. Until that decision is taken, the direct award remains a proposal rather than an approved contract. The committee’s action will determine whether the AMC proceeds with the tender-free outsourcing arrangement and the proposed exemptions from contract and deposit requirements.
