TN govt cancels solid waste consultancy tenders amid privatisation concerns

The Tamil Nadu government has withdrawn consultancy tenders for municipal solid waste management in 12 corporations after criticism over alleged privatisation. Officials clarified the exercise aimed to improve the existing PPP system and said the framework would now be reviewed comprehensively

Chennai: The Tamil Nadu government has withdrawn tenders floated to appoint consultancy firms for preparing detailed feasibility reports (DFRs) on municipal solid waste collection and transportation under the public-private partnership (PPP) model in 12 municipal corporations, following criticism that the move signalled a fresh push towards privatisation.

The tenders, issued by the Tamil Nadu Urban Infrastructure Financial Services Limited (TNUIFSL), were cancelled within days after officials said they had been widely misconstrued as a new attempt to privatise municipal solid waste management.

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A senior government official clarified that solid waste management in all municipal corporations and municipalities has already been operating under the PPP model since 2022 and that the consultancy proposal was only intended to assess and improve the existing system.

“The tender was meant to appoint consultants to prepare feasibility reports and examine ways to strengthen the current arrangements. Since it was misunderstood as a fresh privatisation initiative, the government has decided to withdraw it and re-examine the entire framework,” the official said.

Sources said the Urban Development Department will now review the existing solid waste management mechanism, identify operational gaps and shortcomings in the present contractual arrangements, and decide on the future course of action after a comprehensive assessment.

On June 20, TNUIFSL had invited bids from consultancy firms to prepare DFRs and provide transaction advisory services for municipal solid waste management in Avadi, Hosur, Tambaram, Vellore, Coimbatore, Erode, Salem, Tiruppur, Madurai, Thoothukudi, Tiruchy and Tirunelveli.

The consultancy assignment, estimated to cost Rs 4.05 crore, was divided into three packages and was to be funded through the Project Development Grant Fund.

Officials had maintained that the exercise was aimed at improving the efficiency of the existing waste management system by addressing deficiencies in current contracts and identifying better operational models. However, the proposal triggered sharp criticism from political parties and sanitation workers’ unions.

While some described it as a fresh bid to privatise municipal solid waste management, others argued that it reflected the government’s intention to continue expanding private participation in the sector.

Welcoming the withdrawal of the tenders, the CPI(M) and CPI said the government’s decision was a positive step.

CPI(M) state secretary P. Shanmugam said sanitation workers, who were once appointed as permanent employees, had increasingly been pushed into temporary and contract-based jobs, resulting in insecurity and exploitation. He urged the government to strengthen the public waste management system while safeguarding the rights and livelihoods of sanitation workers.