Mumbai’s plan to overhaul its waste collection and transportation system has hit an unexpected hurdle after the city’s municipal corporation received bids that were more than a third higher than its internal cost projections. The development has raised questions about budget planning, contractor margins and the feasibility of shifting to a fully service-based waste management model across the city’s 21 administrative wards.
The Brihanmumbai Municipal Corporation (BMC) opened financial bids this week for its proposed ₹4,000-crore, multi-year contract aimed at consolidating waste collection and transport under a single operating agency per zone. Four firms submitted proposals, but officials confirmed that each bid exceeded municipal estimates by 32–34 per cent. Under existing guidelines, any contract above ₹250 crore overshooting estimates by more than 10 per cent requires the tender to be recalled, making a re-tender highly probable. Officials familiar with the evaluation process said the unexpectedly high quotes are likely linked to rising fuel prices, higher staffing costs, and the requirement to introduce electric vehicles into the fleet. “The new model demands integrated logistics, dedicated maintenance systems and several compliance layers. Bidders may have built in significant buffers,” an administrative official said.
The proposed service-based system represents a departure from Mumbai’s fragmented waste-handling structure, where vehicle provision is outsourced but collection and transportation remain largely decentralised. Under the new framework, agencies would operate modern, colour-coded, high-capacity vehicles—10–15 per cent of which must be electric—and take charge of bin placement, maintenance and movement. Urban waste experts say the model, if implemented effectively, could reduce duplication and improve accountability. Mumbai generates around 6,900 metric tonnes of waste daily, transported through more than 1,300 vehicles. At present, only three wards—L, M East and M West—depend primarily on municipal vehicles due to their proximity to dumping grounds.
In all other wards, private contractors supply the fleet under hiring-based arrangements. Industry observers point out that shifting the full value chain to private operators could help standardise citywide performance but will require rigorous oversight. The proposal initially faced resistance from the civic labour union, which feared that contractual outsourcing could lead to job losses. The administration assured workers that existing roles would not be discontinued, allowing the tender process to proceed. If the tender is reissued, experts expect revised conditions that balance cost realism with sustainability goals. Introducing electric vehicles and improved collection standards aligns with Mumbai’s long-term climate and solid waste mandates, but the financial strain remains a sticking point. A waste policy analyst noted, “Cities need modern waste systems, but procurement must be structured carefully to protect public finances while encouraging innovation.”
For now, Mumbai’s waste management upgrade—critical for a city aspiring to a more resilient, inclusive and low-carbon urban environment—remains in a holding pattern. The next round of tendering will determine whether the reform can advance without compromising either fiscal discipline or environmental commitments.
