Pune Waste Processing Tender Cost Surges by Rs 265 Crore; PMC Faces Questions Over Fresh Bidding Process
Pune, 14th July 2026: A proposed Pune Municipal Corporation (PMC) contract for processing 500 tonnes of wet and dry waste per day has sparked controversy after the lowest bid in the fresh tender came in significantly higher than the rate proposed earlier, potentially increasing the civic body’s expenditure by around Rs 265 crore over the project’s lifespan.
The contract relates to the establishment of facilities to process 300 tonnes of wet waste and 200 tonnes of dry waste generated in the city every day.
Earlier this year, the PMC administration had proposed awarding the work to a contractor on an emergency basis without inviting tenders, quoting a rate of Rs 694 per tonne. However, the proposal was rejected by the Standing Committee, which directed the administration to invite tenders instead, citing procedural concerns.
Following the fresh tender process, Bhoomigreen Energy Envirocare LLP emerged as the lowest bidder by quoting Rs 943 per tonne, while Antony Lara Enviro Solutions Pvt Ltd submitted a bid of Rs 1,190 per tonne. As the lowest bidder, Bhoomigreen is expected to be awarded the contract, with the proposal likely to be placed before the Standing Committee shortly.
The increase in the quoted rate from Rs 694 to Rs 943 per tonne has raised concerns over the financial impact on the civic body. According to estimates, the total project cost over the proposed 20-year contract period has increased from about Rs 725 crore to nearly Rs 985.8 crore, an escalation of around 35.9%, resulting in an additional burden of approximately Rs 265 crore.
The issue has also triggered debate over the tendering process. Critics alleged that instead of issuing separate tenders for wet and dry waste processing, the PMC floated a combined tender, limiting competition and allowing only a few companies to qualify. They claimed that separate tenders could have encouraged wider participation and resulted in more competitive pricing.
Pune generates around 2,700 tonnes of municipal solid waste every day. Although the city has 27 waste processing facilities, officials acknowledge that many are not operating at their full capacity, prompting the civic body to plan additional processing infrastructure.
The fresh tender process was initiated after the Standing Committee rejected the administration’s earlier proposal, which had sought approval under emergency procurement provisions. Despite objections raised over the tender conditions, the PMC proceeded with a combined tender for both wet and dry waste processing.
The significant increase in the project cost has led to discussions within civic circles over the reasons behind the higher financial outlay and whether the tender conditions adequately promoted competitive bidding.
PMC officials have not yet issued a detailed response to the allegations regarding the tender process. The proposal to award the contract is expected to be taken up by the Standing Committee in the coming days.
