Solid Waste Management and Recycling

TRIAL AND ERROR IN PRIVATISATION IN HYDERABAD 95

In 1998 the MCH acknowledged that the privatisation efforts to date were unsatisfac-
tory. The poor record of the private sector was attributed to three reasons: first of all,
the failure to ensure accountability by the private operators; secondly, the lack of a
proper monitoring system; and thirdly the absence of fixed output norms (MCH,
1998a). At that time, for example, a local newspaper reported that due to a secret
syndicate between private contractors and several MCH officials the quotations
increased excessively, by almost 200 percent in comparison with the rates quoted in
the previous tender procedure (Deccan Chronicle, 3/31/98). In an attempt to overcome
these problems the MCH in September 1998 introduced an entirely new organisational
framework and a rational system of monitoring. In order to bring uniformity in the
system the city wards were divided in 266 so-called units of more or less equal size.
Out of this total, 120 were handed over to the MCH workers while the remaining 146
units were awarded to the private sector. The MCH labourers who used to work in the
privatised units were re-distributed among the remaining MCH units. In addition,
private contractors took up some new i.e. previous un-serviced areas. Each unit has a
total length to be swept of 7 to 8 km and produces around 7 to 8 Mt. every day. Every
unit consists of one sweeping and one lifting unit. For each unit the MCH has stipu-
lated the following labour requirements.

Payment to the private contractors under this so-called unit system is based on a
uniform calculation as can be seen in table 5.2. This calculation includes a standard
profit margin of 10 percent and fixed implements for workers and vehicles (spades,
baskets, brooms, safety equipment etc.). The MCH regards the method of exactly stip-
ulating the contract requirements to be met as a measure to prevent a price-fixing
among contractors and to protect itself against under-quoting by contractors, resulting
in a failure to perform up to standard.

Table 5.1. Labour requirements for one unit

Labour requirements

Sweeping unit Lifting unit

Type of labourers No. Type of labourers No.

Kamatans (female)
Kamatees
Sanitary Jawans

14

7

1

Lorry labourers

Supervisor

5

1

Total 22 Total 6

Source: MCH, 1999b