BMC ends deadlock on Deonar legacy waste clearing contract in Mumbai, settles on 3% above cost estimate

Mumbai: After two rounds of negotiations with the contractor, BMC on Thursday approved the Deonar bioremediation contract at 3% above the estimate, instead of the 7.29% above estimate originally quoted by the company. On Thursday itself, a TOI report highlighted how the price dispute had stalled the project for scientifically treating the 185 lakh tonnes of legacy waste at the Deonar landfill, nearly six weeks BMC awarded the contract to Navayuga Engineering Ltd.Navayuga Engineering Ltd had quoted Rs 2,540 crore, 7.29% above BMC's estimate of Rs 2,368 crore in July, beating HG Infra (11.83%) and Re Sustainability (24.8%). Civic officials said that rejecting the bid would mean retendering, delaying the project further. With the BMC commissioner's approval now, concerns of the project being sent back to the drawing board were put to rest. An official privy to the development confirmed, "The proposal to give the work 3.1% above estimate has been cleared by the BMC commissioner."The Deonar bioremediation project is among the largest tenders floated in recent years by BMC for solid waste management. The contract period is set for three years, which includes the periods of mobilisation works and monsoon. Mobilisation works are expected to take at least six months as the height of the waste at some spots goes up to 40m. Also just adjacent to the landfill is a creek and the fear of a mountain of waste crashing down into it cannot be negated, said officials. Further, NOCs from several departments, including Coastal Regulatory Zone, forest department, and mangrove cell, would be needed as the land is an eco sensitive zone.The state cabinet in Oct 2024, had approved a proposal to handover a portion of Deonar dumping ground — one of the oldest and most toxic landfills in the country — for the Dharavi Redevelopment Project, a joint venture being led by Navbharat Mega Developers Pvt Ltd (Adani Group's Special Purpose Vehicle) and Maharashtra govt. Subsequently, the state govt directed BMC to clear 124 acres of the 311-acre Deonar dump, which currently has close to two crore tonnes of legacy waste in it.Legacy waste is that which accumulates when uncontrolled and unregulated dumping of waste continues for decades on a barren piece of land, mostly on the outskirts, which then becomes part of a city due to urbanisation.