Pune: PMC’s Biomining Tender Draws Heavy Competition, Cuts Waste Processing Cost by Rs 120 Crore

Pune, 13th December 2025: The Pune Municipal Corporation (PMC) is set to save nearly ₹120 crore on the biomining and disposal of legacy waste at the Fursungi–Uruli Devachi garbage depot after intense competition in the latest tender process brought down processing rates significantly.

In the tender for biological excavation and disposal of waste, one contractor quoted the lowest rate of ₹550 per tonne. As per the tender conditions, this rate will now apply to all five packages, officials said.

Around 28 lakh metric tonnes of legacy waste have accumulated at the Fursungi garbage depot, and the civic body has set a target of clearing the site by 2027 through biomining. To fast-track the process, PMC floated five separate tenders of 5.60 lakh metric tonnes each, planning to carry out biomining of the entire 28 lakh tonnes simultaneously.

The tender process was conducted in line with guidelines issued by the Union Ministry of Housing and Urban Affairs (MoHUA). A total of 17 contractors submitted bids for the five packages, of which eight were found technically eligible. The financial bids were opened on Friday.
According to officials, Alpha Therm Limited quoted the lowest rate of ₹550 per tonne for Package Two. For Packages One, Three, Four and Five, Daya Charan & Company quoted a rate of ₹717 per tonne.

However, PMC’s tender conditions specify that all five packages must be executed at the lowest quoted rate. As a result, contractors handling the remaining packages will be required to carry out the work at ₹550 per tonne. If any contractor declines, the civic body will approach other eligible bidders, officials said.

For comparison, in 2024, PMC had issued a tender for biomining of 10 lakh metric tonnes of waste, in which Bhumigreen quoted ₹979 per tonne. At that rate, the civic body spent around ₹97 crore for processing 10 lakh tonnes of waste.

This year, with biomining planned for 28 lakh metric tonnes at ₹550 per tonne, the total expenditure is expected to be around ₹154 crore. Had last year’s rate of ₹979 per tonne been applied, the cost would have been significantly higher, resulting in an estimated saving of about ₹120 crore.

“A processing fee of ₹550 per tonne has been received across the five packages, which is the lowest rate. The tender included a condition that work in all packages would be executed at the same rate. Accordingly, the process to implement this has been initiated,” said Pavneet Kaur, additional municipal commissioner.

Municipal Commissioner Naval Kishore Ram said the transparent tender process and strong competition among bidders worked in PMC’s favour. “There was healthy competition in the biomining tender, which has resulted in substantial financial savings for the municipal corporation,” he said.

PMC officials said the biomining project is a key step towards reducing environmental hazards and freeing up land at the Fursungi–Uruli Devachi site, which has long been a major waste disposal point for the city.