TRIAL AND ERROR IN PRIVATISATION IN HYDERABAD 97
absorption of contract labourers working for a private contractor into government
service because they had been found ‘state employees in disguise’. Although it was
unclear whether this ruling would also be applicable to the unit-system in Hyderabad,
the MCH anticipated with some adjustments in the terms of reference of the contracts.
As one MCH official put it, these ‘little manipulations’ were intended to prevent aboli-
tion of the contract system. These corrections, however, have made the contracting out
of public services less secure, especially for the contract labourers (shorter contracts,
abolition of PF and ESI facilities etc.).
5.3. IMPLICATIONS OF PRIVATISATION FOR THE MCH
Since the introduction of the unit system in September 1998 the amount of money
channelled to the private sector has increased sharply. According to the revised budget
estimates 1997-98 (before the introduction of the unit system) the total amount spent
on privatisation of solid waste collection services was 57,39 lakh Rs per month.
The monthly amount spent on privatisation after the introduction of the unit system
can be calculated as follows:
Table 5.3. Expenditure on privatised solid waste collection in 1997-98Works Expenditure per month (in lakhs)
a) Night sweeping
b) Day time sweeping of wards
c) Sweeping of small areas in day time
18,37
32,15
6,87Total 57,39
Source: MCH, 1998b
Table 5.4. Monthly amount spent on privatised solid waste collection
after introduction of the unit systemWork No. of
sweeping
units
Monthly
amount for
one sweeping
unitMonthly
amount
spent on
sweeping
unitsNo. of
lifting
unitsMonthly
amount
for one
lifting
unitMonthly
amount
spent on
lifting
unitsTotal- Day
- Night
142
5046,640.-
73,695.-6,622,880.-
3,684,750.-121
2137,400.-
45,898.-4,525,400.-
963,858.-11,148.280.-
4,648,608.-Total 192 10,307,630.- 142 5,489,258.- 15,796,888.-
Calculation based on: MCH, 1999b