Mumbai, July 3 -- The Tamil Nadu government has withdrawn consultancy tenders for municipal solid waste management in 12 municipal corporations after criticism that the exercise signalled a fresh push towards privatisation. The tenders had been issued by Tamil Nadu Urban Infrastructure Financial Services Limited (TNUIFSL) to appoint firms to prepare detailed feasibility reports for collection and transportation services under a public-private partnership (PPP) framework. Officials said the move was widely misconstrued and was cancelled within days.
A senior government official clarified that municipal solid waste services in corporations and municipalities have been operating under the PPP model since 2022 and that the consultancy proposal was intended only to assess and strengthen existing arrangements. The official explained that the tender aimed to examine ways to improve contractual provisions and operational efficiency rather than to introduce new privatisation measures. The government decided to withdraw the tender and undertake a comprehensive review of the entire framework.
TNUIFSL had invited bids on June 20 for transaction advisory services and detailed feasibility reports for Avadi, Hosur, Tambaram, Vellore, Coimbatore, Erode, Salem, Tiruppur, Madurai, Thoothukudi, Tiruchy and Tirunelveli. The consultancy assignment was estimated to cost Rs 40.5 million (mn) and was divided into three packages to be funded through the Project Development Grant Fund. Officials maintained that the exercise was meant to identify deficiencies in current contracts and to explore improved operational models to raise efficiency and service delivery standards.
The proposal drew sharp criticism from political parties and sanitation workers' unions, some of which characterised it as a renewed attempt to privatise waste services while others viewed it as an indication of expanding private participation. The CPI(M) and the CPI welcomed the withdrawal and urged the government to reinforce public waste management and protect the livelihoods and rights of sanitation workers who have increasingly shifted to temporary and contract employment. The Urban Development Department will conduct the comprehensive assessment before deciding the course of action.
Published by HT Digital Content Services with permission from Construction World.