The Chandigarh Municipal Corporation (MC) has given the green light for a new 60 tonnes per day (TPD) horticulture waste processing plant, following approval from the general house on Thursday. The project will be executed by a Punjab-based agency selected through a royalty-based bidding process.
Royalty Model and Plant Operations
Under the approved royalty model, the selected bidder will establish, operate, and maintain the 60 TPD plant. In return, the agency will pay the MC a royalty of Rs 92.50 per metric tonne of waste processed. Additionally, the same agency will also take over the operation and maintenance of the existing 30 TPD horticulture waste plant at the same site, which is currently run by the civic body.
A senior MC official explained that the existing 30 TPD plant is limited to processing pruned material, primarily branches. In contrast, the new 60 TPD facility will be capable of handling all types of horticulture waste, including leaves and large tree trunks. The project is initially set for a seven-year period, with a possible extension of three more years based on the company's performance.
Detailed Project Specifications
According to the agenda presented before the general house, the project is entirely on a royalty basis, meaning the agency pays the MC. The successful bidder must establish, operate, and maintain the 60 TPD plant for scientific processing of horticulture waste, in addition to managing the existing 30 TPD plant. The plant must be set up within four months from the issuance of the Letter of Allotment (LoA), followed by a one-month trial run. Royalty payments to the MC will be calculated monthly from the date of the LoA.
The agenda further specifies that the successful bidder will bear all costs for arranging electrical connections, water supply, sewer connections, and necessary approvals, including consent to establish and operate from relevant departments. The royalty will be based on the actual quantity of horticulture waste received at both plants, with an annual escalation of 5% on the previous year's royalty. The contract period is seven years from the LoA, extendable yearly for up to three additional years, subject to satisfactory performance and MC requirements.
Challenging Selection Process
The MC underwent a rigorous process to select the agency. Official records indicate that in the first two tender exercises, only a single agency participated, which did not meet the eligibility criteria. In the third attempt, three agencies participated, but only one bid was technically qualified and was not considered. In the fourth round, two agencies participated, and only one was technically qualified to open the financial bid. After negotiations, the agency agreed to increase the royalty from Rs 10 to Rs 92.50 per metric tonne, subject to the conditions of the Request for Proposal (RFP).
