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Ludhiana: Eyebrows raised as tender rates revised from ₹1,200 cr to ₹1,500 cr
Sanitation contracts revised, re-floated within three days after nod; activists raise concerns over transparency
The municipal corporation, already grappling with a severe financial crunch, has come under flak for revising and clearing three high-value tenders during a recent General House meeting held here on Tuesday, raising questions over transparency and accountability. The tenders, collectively worth over ₹1,500-crore, covering solid waste management and mechanised road sweeping, were re-floated just three days after the revised rates were approved.
Civic body chief Neeru Katyal defended the move, saying the rate hikes accounted for additional components aimed at improving sanitation in the city, adding that earlier tenders had failed to attract bidders. According to documents accessed by Hindustan Times, the House approved the revisions without detailed discussion, prompting concerns from civic activists and experts over financial prudence.
The largest component is the Integrated Solid Waste Management (ISWM) project. Initially floated at ₹3,300 per tonne, the tender did not attract any bids. The MC revised the rate to ₹4,221 per tonne, bringing the total estimated eight-year project cost to over ₹1,400 crore.
Earlier, the estimated cost of the project was over ₹1,244 crore Critics argue that such a steep increase reflects poor planning and could indicate inflated contracts.
Road sweeping tenders have seen similar escalations. The internal roads sweeping contract covering roughly 2,500 km has been re-floated at ₹1,800 per km, more than double the previous ₹867 per km rate, with a total three-year cost of nearly ₹70 crore. The main roads sweeping tender has jumped from ₹827 per km to ₹2,500 per km for 697 km, bringing the total estimated expenditure to ₹80 crore. This comes despite the civic body already operating its own machinery and outsourcing sweeping for 153 km to a private company.
Activist Kuldeep Khaira strongly objected to the process, alleging that the revisions were pushed through without proper deliberation.
“The rates have been massively increased with no clear justification. Passing these agendas in this manner, and re-floating the tenders within just three days, raises suspicion. Proper inquiry should be conducted by the SIT,” he said. Khaira added that the MC has failed to clearly bifurcate costs or explain the basis of such high rates.
“At a time when the MC is facing severe fund shortages, such decisions could put a huge dent on its finances,” he said.
Background discussions indicate that the civic body has been under pressure to improve cleanliness standards and waste management systems.
Experts, however, caution that such objectives cannot justify unchecked cost escalations or bypassing due process.
Responding in detail, MC commissioner Neeru Katyal said, “Rates have been revised as some factors and components have been added in the tender which will improve the sanitation level in the city. Additionally, no takers were there for all three tenders floated in the past.”
With these revised tenders, the MC is committing to massive expenditures at a time when salaries are often delayed and basic development works remain incomplete, raising concerns over financial management and oversight.
