Pan-India firm surprises city with very low bids for garbage tenders

A Bengaluru beleaguered with garbage collection and disposal is all set to see the next 3 years of contracts kickstarted this month. However, one firm has bid far lower rates than expected.

This month, new contractors will start garbage clearance work in 168 wards in the city. These wards are covered in 77 packages. Fifty of the 77 packages have gone to a single company, named BVG India Pvt Ltd. This company has also bid for extremely low amounts in most packages. In one case, its bid amount was 50% lesser than BBMP’s estimated amount.

The corporate office of BVG India in Vasanth Nagar. This company won the highest number of garbage tenders in the city. Pic: Navya P K

But there is another story behind these low amounts – BVG seems to have far lesser machinery and staff than required. BBMP’s tender documents specify the number of staff and equipments required. BBMP officials have said that BVG’s resources are lesser than its prescribed standards. West zone officials have mentioned this in the document that BBMP Council approved. The city council had approved all tenders on October 30th.

Eleven of BVG’s packages are in BBMP’s west zone. In the document, the zone officials have said that the bid rates of BVG are very low in the 11 packages. In one case, the bid rate was about 35% less than BBMP’s estimated rate. Officials said that BVG did not have enough vehicles and staff to do the works for the 11 packages.

The document says that BVG has suggested some measures – such as, to have one tipper auto collect waste from 1000 houses. But this violates BBMP’s standard, of having one for every 600 houses. While BBMP standard is to have each pourakarmika sweep one km of road, BVG has said that its pourakarmikas will sweep 4.8 kms of road. BVG also said that there will be one pourakarmika per 300 houses, and that pourakarmikas assigned street sweeping work will also help with door-to-door collection.

Tender Status:
Total packages – 91
Stuck in court – 2
Approved – 77
Re-tendered – 12

This is not all. BVG has submitted an affidavit saying that if works are not done properly, BBMP does not have to pay the company. West zone officials had recommended that BVG can initially be given one package, and that based on performance, the other 10 packages will be given to it. But it was decided later that work on all packages will start simultaneously.

B T Mohan Krishna, Technical Advisor to the Commissioner, says, “Because of the current garbage situation, we have asked government to approve all packages. This is a service contract, as opposed to a works contract. So it is fine, as long as BVG can get the work done, with whatever resources it has.” Mohan Krishna is in charge of the tender process, at BBMP’s head office.

BVG and other winning bidders have all got LoAs (Letter of Award) from BBMP already. LoA is a written confirmation to contractors that they have won. Now contractors have to submit an implementation plan. BBMP has to approve this plan, and then sign an agreement with contractors.

“BVG is yet to submit its implementation plans. As per these plans, if they seem capable of doing the work, we will sign the agreement,” Mohan Krishna says.

BBMP is also awaiting state government’s approval for the tender process. These approvals are likely to come about soon, since there is pressure from the High Court or Karnataka on this as well. In the November 6th hearing of a PIL on garbage disposal, High Court had directed the government to approve the tenders within two weeks.

No new contractors for 30 wards yet

There are 91 garbage tender packages for the entire city. Each package covers 1-3 wards, and tenders are for three years. Of the 91 packages, two are stuck in court. Hence in September, BBMP had called tenders for remaining 89. Of these, 77 were approved in the BBMP Council session of October 30th.

The 12 unapproved packages have been re-tendered now. Some of these packages had not gotten any bidders at all, while a few had bidders quoting either too high or too low prices; some bidders were disqualified for technical reasons.

BBMP has floated new tenders on November 5th. November 16th is the deadline for contractors to submit bids.

The packages that are being re-tendered are:

  • Ramamurthy Nagar (ward no 26) and Vijinapura (51)
  • Chokkasandra (39) and Peenya Industrial area (41)
  • Devarajeevanahalli (47), SK Garden (61), Pulakeshinagar (78)
  • Kushaal Nagar (31), Sagayapuram (60)
  • Kavalbyrasandra (32), Muneshwara Nagar (48)
  • Jayanagar East (170),Guruppanapalya (171)
  • Sudham Nagar (118), Dharmaraya Swamy Temple Ward (119)
  • K.R Market (139)
  • Padarayanapura (135), Jagajeevan Ramnagar (136)
  • Gandhinagar (94), Dattatreya Temple (77)
  • Dayananda Nagar (97), Prakash Nagar (98), Sri Ramamandira Ward (108)
  • Rajmahal Guttahalli (64), Kadu Malleshwaram (65)

The two packages that are stuck in court, belong to south zone. Together, they cover five wards – Hosakerehalli (161), Ganesh Mandira (165), Yadiyur (167), Chikkakallasandra (183) and Yalachenahalli (185).

Below are the list of the 77 approved tenders, names of contractors, and the amount BBMP will pay them for waste management every month.

Sl.No. Ward number and  Name Contractor Monthly Amount (Rs in lakhs)
1 129 Jnanabharathi
160 Rajarajeshwari Nagara
Prasanna Shastry (BVG India Ltd) 30.43
2 69 Laggare
73 Kottigepalya
Kodandapani M Guntupalli 40.05
3 38 HMT
42 Lakshmidevinagar
Vasudev M Guntupalli 26.65
4 16 Jalahalli
17 J P Park
Prasanna Shastry (BVG India Ltd) 24.55
5 37 Yashawantapura Narendrea S D 16.27
6 40 Doddabidirakallu
72 Herohalli
Prasanna Shastry (BVG India Ltd) 28.89
7 130 Ullalu
159 Kengeri
198 Hemmigepura
Prasanna Shastry (BVG India Ltd) 35.43
8 174 HSR layout
190 Mangammana playa
Prasanna Shastry (BVG India Ltd) 42.21
9 175 Bommanahalli
188 Bilekahalli
189 Hongasandra
Prasanna Shastry (BVG India Ltd) 40.79
10 186 Jaraganahalli
187 Puttenahalli
193 Arakere
Prasanna Shastry (BVG India Ltd) 43.32
11 191 Singasandra Radhakrishna Hosadurga Nayaka 28.87
12 192 Begur
194 Gottigere
Prasanna Shastry (BVG India Ltd) 42.03
13 195 konanakunte
196 Anjanaapura
Prasanna Shastry (BVG India Ltd) 29.58
14 184 Uttarahalli
195 Yalachenahalli
197 Vasantapura
Prasanna Shastry (BVG India Ltd) 46.64
15 52 K R pura
53 Basavanapura
55 Devasandra
D M Nagaraj 53.22
16 25 Horamavu Prasanna Shastry (BVG India Ltd) 32.38
17 56 A Narayanapura
81 vijnana nagara
87 HAL airport
Prasanna Shastry (BVG India Ltd) 35.18
18 54 Hoodi
82 garudacharya palaya
85 doddanekkundi
Prasanna Shastry (BVG India Ltd) 51.37
19 83 Kadugodi
84 hagadooru
149 vartur
Prasanna Shastry (BVG India Ltd) 44.97
20 86 Marathalli
150 bellandur
Prasanna Shastry (BVG India Ltd) 47.97
21 1 Kempegowda ward
2 Chowdeshwari ward
Prasanna Shastry (BVG India Ltd) 17.71
22 3 Attur ward
4 yalahanka
Prasanna Shastry (BVG India Ltd) 25.83
23 5 Jakkur ward
6 Thanisandra ward
Prasanna Shastry (BVG India Ltd) 24.80
24 7 Byatarayanapura ward
8 Kodigehalli ward
Prasanna Shastry (BVG India Ltd) 26.31
25 9 Vidyaranyapura ward
10 doddabommasandra ward
11 Kuvempu nagara ward
Prasanna Shastry (BVG India Ltd) 26.75
26 18 Radha Krishna Temple Ward
19 Sanjayanagar
Prasanna Shastry (BVG India) 21.44
27 20 Ganganagar
21 Hebbal
Prasanna Shastry (BVG India) 18.77
28 22 Vishwanatha Nagenahalli
33 Manorayanapalya
Venkatesh B 26.91
29 34 Gangenahalli
46 Jayachamarajendra Nagar
Obalesha A 26.52
30 62 Ramaswamy Palya
63 Jayamahal
Prasanna Shastry (BVG India) 15.99
31 93 Vasanthnagar
110 Samapangirama Nagar
Prasanna Shastry (BVG India Ltd) 25.68
32 90 Halsoor
91 Bharathi Nagar
92 Shivaji Nagar
G M Nandakumar 48.14
33 89 Jogupalya
112 Domlur
Prasanna Shastry (BVG India Ltd) 24.48
34 114 Agaram
115 Vannarpete
Prasanna Shastry (BVG India Ltd) 18.67
35 111 Shantala Nagar
116 Neelasandra
117 Shanthinagar
Veena S 47.22
36 80 Hoysala Nagar
88 Jeevan Bheema Nagar
113 Konena Agrahara
Prasanna Shastry (BVG India Ltd) 33.34
37 57  CV Raman Nagar
58 New Thippasandra
Prasanna Shastry (BVG India Ltd) 25.06
38 50 Benniganahalli
79Sarvajna Nagar
M Shivakumar 24.06
39 49 Lingarajapura
59 Maruthi sevanagar
Somareddy 34.78
40 27 Banaswadi
28 Kammanahalli
Prasanna Shastry (BVG India Ltd) 30.65
41 29 Kacharakanahalli
24 HBR layout
D M Nagaraj 44.84
42 23 Nagavara
30 Kadugondanahalli
Prasanna Shastry (BVG India) 22.16
43 Russel Market M Shivakumar 9.02
44 12 Shettihalli
13 Mallasandra
Dodduloorappa Rs 29
45 14 Baagalagunte
15 Dasarahalli
Vasudeva M Guntupalli 25.45
46 70 Rajagopala Nagara
71 Hegganahalli
Ganesh C N 27.68
47 122 KP Agrahaara
123 Vijayanagara
Prasanna Shastry BVG India 29.09
48 124 Hosahalli
134 Bapujinagar
Prasanna Shastry BVG India 21.34
49 132 Attiguppe
133 Hampinagara
Prasanna Shastry BVG India 16.78
50 157 Gali anjaneya
158 Deepanjalinagara
M N Sriramulu 24.96
51 154 Basavanagudi
155 Hanumantha Nagara
156 Srinagara
Prasanna Shastry BVG India 26.92
52 162 Girinagar
163 Katriguppe
164 Vidyapeeta
B R Nagesh 25.56
53 181 Kumaraswamy layout
182 Padmanabhanagar
Prasanna Shastry BVG India 20.91
54 166 Karisandra
180 Banashankari Devastana
Channakeshava (Sri Lakshmi Venkateshwara Enterprises) 22.25
55 146 Lakkasandra
152 Sudguntepalya
Anjeneya (Annammadevi Prasanna) 16.84
56 172 Madiwala
176 BTM layout
Aiyappa varaprasad 21.2
57 147 Audgodi
148 Ejipura
C Lokesh (Sri Sabari Enterprises) 22.54
58 151 Koramangala
173 Jakkasandra
Prasanna Shastry BVG India 21.59
59 168 Pattabiramanagar
169 Bhyrasandra
Prasanna Shastry BVG India 25.77
60 177 J P Nagar
178 Sarakki
179 Shakambarinagara
Prasanna Shastry BVG India 31.27
61 142 Sunkenahalli
143 VV Puram
Prasanna Shastry BVG India 22.39
62 144 Siddapura
145 Hombegowdanagara
153 Jayanagara
N Manjunatha 26.03
63 66 Subramanya Nagar
76 Gayathri Nagar
B VG India 19.1
64 35 Aramane Nagar
36 Mathikere
45 Malleswaram
B VG India 24.57
65 99 Rajaji Nagar
100 Basaveshwar Nagar
B VG India 19.16
66 101 Kamakshipalya
107 Shiva Nagar
Sriramulu 18.15
67 95 Subhash Nagar
96 Okalipuram
C N Ganesh 20.22
68 109 Chikpet
120 Cottonpet
121 Binnypet
C O N Janardhan 32.93
69 137 Rayapuram
138 Chalavadi Palya
C T Jagannath 43.56
70 140 Chamarajpet
141 Azad Nagar
B VG India 16.97
71 43 Nandini Layout
44 Marappana Palya
B VG India 19.58
72 68 Mahalakshmipuram
74 Shakthi Ganapathi Nagar
B VG India 18.58
73 67 Nagapura
75 Shankaramatt
102 Vrushabhavathi Nagar
B VG India 28.58
74 103 Kaveripura
104 Govindaraja Nagar
B VG India 18.14
75 105 Agrahara Dasarahalli
106 Dr Rajkumar ward
125 Marenahalli
B VG India 18.44
76 126 Maruthi Mandira
127 Moodalapalya
B VG India 15.59
77 128 Nagarbhavi
131 Nayandahalli
B VG India 16.47

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