Karnataka government under scanner for awarding a waste processing contract at inflated costs
Leader of the Opposition in Karnataka, R Ashok, has alleged that the state government orchestrated a massive financial irregularity in Bengaluru’s waste management sector by awarding a waste processing contract worth nearly Rs 39,000 crore.
Addressing a press conference on Tuesday, Ashok claimed that the contract awarded to a company linked to the Ramky Group could become one of the biggest alleged scams in the country’s waste management sector. He alleged that the tender process involved kickbacks worth approximately Rs 10,000 crore.
According to Ashok, the contract has been awarded for a period of 35 years, comprising an initial 30-year term with a provision for a five-year extension. He argued that such a long-term arrangement would impose a significant financial burden on Bengaluru.
The BJP leader stated that Bengaluru had previously been recognised among India’s cleanest cities and alleged that the current government had facilitated financial irregularities under the guise of improving waste management infrastructure.
Highlighting existing expenditure patterns, Ashok said the city currently spends Rs 514 crore annually on waste collection and transportation, Rs 380 crore on waste processing and disposal, and Rs 444 crore on salaries for civic workers, taking the total annual expenditure to Rs 1,344 crore.
He alleged that while local contractors had been handling waste management operations, the new contract was awarded to an outside company despite concerns raised during the evaluation process.
Ashok further claimed that expert recommendations from government-owned consultancy RITES were overlooked and that advice from an unrecognised consultant was given preference. He also alleged that the selected company had been permitted to raise loans worth Rs 1,500 crore and had been allotted government land for the project.
Questioning the project’s financial viability, Ashok said the current tipping fee stands at Rs 260 per tonne, whereas the new contract proposes a fee of Rs 2,400 per tonne. According to him, continuing with the existing model for three decades would cost around Rs 6,117 crore, while the new arrangement could increase expenditure to more than Rs 39,000 crore.
The BJP leader also alleged procedural lapses in the tendering process, including inadequate scrutiny and the failure to publish mandatory notices. He claimed that objections had been raised regarding the awarding of multiple packages to a single company, the contract’s duration and annual escalation clauses.
According to Ashok, senior officials had recommended reducing the contract period and revising escalation provisions to minimise long-term financial liabilities for the city.
He further alleged that the company selected for the project had previously faced scrutiny and that an earlier contract involving the firm had been cancelled by the Bruhat Bengaluru Mahanagara Palike (BBMP) in 2016.
Demanding immediate cancellation of the tender, Ashok called for a thorough investigation into the entire process. Later in the day, he met Thawar Chand Gehlot at Raj Bhavan and submitted a formal complaint seeking an inquiry into the project.
The BJP leader urged the Governor to examine the tender process, review the eligibility of participating firms, investigate the preparation of the Detailed Project Report (DPR), and scrutinise the approvals granted for the project.
The Karnataka government has not yet publicly responded to the allegations.
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