Pune: Biomining Tender at Fursungi-Uruli Devachi Depot Raises Concerns Over High Costs

Pune, 6th September 2024: It has come to light that the tender issued by the Pune Municipal Corporation (PMC) for the biomining of waste from the waste depot at Fursungi, Uruli Devachi is getting relatively expensive.

It has come to light that the eligible contractor has charged an additional rate of Rs 135 for tipping charges. Therefore, while biomining of 100 tons of waste, the PMC will have to pay around Rs 13.50 crore. Reportedly, the PMC has sent a letter to the contractor to reduce the rate.

The PMC has started biomining 53 lakh metric tonnes of waste from the waste depot at Fursungi-Uruli Devachi as per the order of the National Green Tribunal (NGT). 21 lakh metric tonnes of biomining has been done so far by holding tenders in 2016 and 2021. Subsequently, a tender has been sanctioned for biomining of 10 lakh metric tonnes of waste, for which the amount of tipping fee has been fixed at Rs 844 per tonne.

While issuing this tender, the administration made the condition of mandatory disposal experience of two lakh tonnes of Refuse-Derived Fuel (RDF). A complaint was made to the PMC that the said condition will limit only certain contractors who will qualify, if there is more competition, the PMC will benefit financially. But these complaints were dismissed and the condition was maintained resulting in only two contractors getting qualified.

Both these contractors were also qualified in the 2022 tender. Bhumi Green Energy Company has prepared to get the tender this year too by paying the lowest price of Rs 979 per tonne. But the said rate is Rs 135 per tonne higher than the municipal rate. The said rate is said to be much higher than the market price.

For biomining work, the rate is Rs 420 per tonne in Sangli and Rs 612 per tonne in Lucknow. The PMC has given a letter asking to submit a breakdown of the tender rate and inform about the rate reduction within seven days.

In 1.5 years, the contractor is supposed to be biomining 100 tonnes of waste. Bhumi Green Company has a power generation plant at Sangli, which will be disposed of using RDF as fuel. If the rates are not reduced, according to the rate of Rs 979 per tonne will result in Rs 13.50 crore more for 100 tonnes. Officials said that the PMC cannot afford this cost.