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BMC Seeks 216-Day Extension For Mulund Biomining Contract
ECONOMY & POLICY

BMC Seeks 216-Day Extension For Mulund Biomining Contract

The BMC administration has submitted a proposal to the Standing Committee seeking a 216-day extension of the Mulund dumping ground biomining and remediation contract, which would keep the agreement with M/s Bio Mining India Pvt Ltd in force until 19 April 2027. The request follows a contour survey and site assessment that identified an additional 0.7 million (mn) tonnes (t) of legacy waste requiring processing. The contractor had already completed seven mn t under the original scope.

At the existing contractual rate of Rs 798 per t the civic body estimates processing the additional waste will cost approximately Rs 558.6 mn. The original six-year contract, approved in June 2018, had been extended owing to disruptions caused by the Covid-19 pandemic, cyclones, heavy rainfall and fuel shortages and the tenure was last set to end on 27 May 2026. The administration argued that floating a fresh tender would delay work and increase expenditure.

Project management consultant May Mitcon Consultancy and Engineering Services Ltd assessed the site and stated the additional quantity can be processed using the contractor's existing machinery, manpower and infrastructure and described continuation as economically beneficial and in the public interest. A technical assessment by KPMG Advisory Services Pvt Ltd estimated the contractor's average productivity at 3,240 t per day. That rate implies roughly 216 days would be required to finish the extra material.

The proposal therefore seeks to extend an already extended contract and to award additional work worth Rs 558.6 mn to the incumbent without a fresh competitive process. The civic administration maintained that the existing rate is more economical than prevailing market rates for comparable work. The Standing Committee will consider the submission before making a decision.

The BMC administration has submitted a proposal to the Standing Committee seeking a 216-day extension of the Mulund dumping ground biomining and remediation contract, which would keep the agreement with M/s Bio Mining India Pvt Ltd in force until 19 April 2027. The request follows a contour survey and site assessment that identified an additional 0.7 million (mn) tonnes (t) of legacy waste requiring processing. The contractor had already completed seven mn t under the original scope. At the existing contractual rate of Rs 798 per t the civic body estimates processing the additional waste will cost approximately Rs 558.6 mn. The original six-year contract, approved in June 2018, had been extended owing to disruptions caused by the Covid-19 pandemic, cyclones, heavy rainfall and fuel shortages and the tenure was last set to end on 27 May 2026. The administration argued that floating a fresh tender would delay work and increase expenditure. Project management consultant May Mitcon Consultancy and Engineering Services Ltd assessed the site and stated the additional quantity can be processed using the contractor's existing machinery, manpower and infrastructure and described continuation as economically beneficial and in the public interest. A technical assessment by KPMG Advisory Services Pvt Ltd estimated the contractor's average productivity at 3,240 t per day. That rate implies roughly 216 days would be required to finish the extra material. The proposal therefore seeks to extend an already extended contract and to award additional work worth Rs 558.6 mn to the incumbent without a fresh competitive process. The civic administration maintained that the existing rate is more economical than prevailing market rates for comparable work. The Standing Committee will consider the submission before making a decision.

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