The issue has been referred to the PPP cell for study

The Greater Visakhapatnam Municipal Corporation (GVMC) is weighing the cost-benefit impact of handing over the solid waste management in public-private partnership to Ramky Enviro Engineers Private Limited.

The bone of contention is absorbing the outsourcing sanitation workers. While the corporation has 5,500 workers, the company is offering to take only 2,100 workers.

The GVMC general body resolution in November 2011 handing over the SWM to the company stated that all the outsourcing workers should be absorbed. However, a State-level committee favoured absorbing only 2,100 workers.

Since the term of the elected body ended in February, 2012, the then Special Officer and District Collector Lav Agarwal, however, did not approve Ramky reducing the absorption of workers.

Principal Secretary, MA &UD, B. Syam Bob, had stated that there were several views and all of them were under the consideration of the government.

However, he is of the view that the terms and conditions mentioned in the expression of interest should hold good.

Municipal Commissioner M.V. Satyanarayana has reportedly referred it to the Public Private Participation cell for study of the cost-benefit ratio in view of the maintenance being given for 25 years.

Cost-benefit ratio

In any such long-term commitment, weighing the cost-benefit ratio is considered quite important.

After his referring to the PPP cell in the Department of Finance additional information has been sought a few days ago and was furnished. The committee will analyse the entire process, see whether the tendering process has been adhered to, the financial process and make its recommendation to the government. The final decision is to be taken by the MA&UD Ministry and the government.

Garbage

The GVMC generates about 1,000 tons of garbage a day and the agreement with Ramky is to pay Rs.1,683 per ton for managing it.

Presently the corporation pays Rs.7,900 to outsourced workers.