TRIAL AND ERROR IN PRIVATISATION IN HYDERABAD 111
contractors expects that the new role of the private sector in solid waste collection is
an irreversible development. However, they do expect some adjustments in the nearby
future regarding the terms of reference, notably an enlargement of the areas (i.e.
merging of units) and a downward adaptation of profit margins.
Willingness to continue
Considering the high degree of satisfaction among contractors, it is not surprising that
most of them like to continue. Only one contractor said he would step back in a next
contract period due to the low profit margin. The majority would like to take up more
areas in a new contract period. However, the number of contractors who responded
negatively to this idea was sizeable (almost 30 percent).
Opinions of labourers
A large majority (83 percent) of the MCH labourers disagrees with the MCH privati-
sation policy. Only a tiny fraction (6 percent) adopts a positive view arguing that ‘they
work well’ or ‘at least they create some employment’ More than 10 percent of the
labourers has no opinion on this matter, or is merely stating that “it is a government
decision”. Although the role of the private sector in Hyderabad’s solid waste collec-
tion has grown fast, most of the MCH labourers rest assured of their strong legal
position and do not seem to be scared of losing their job. When, for instance, they were
asked if they perceive increasing privatisation of solid waste collection as a threat to
their own position, a vast majority (87 percent) answers ‘no’.
Both categories of labourers seem to be aware of the difference in labour conditions
under which they are working. Obviously, none of the MCH labourers would like to
work for a private contractor, the main argument being that they are extremely pleased
with the permanency of their job (the other benefits of their current employment such
as salary, pension and other non-wage benefits are not mentioned). Private labourers,
on the contrary, are very eager to work for the Corporation. The main arguments relate
to the permanent character of the job (61 percent), the higher salary (21 percent) and
because it is a ‘government-job’ (17.4 percent).
5.7. CONCLUSION
The nature and course of the privatisation process in Hyderabad are largely deter-
mined by the increasing government concern about solid waste management and the
power of various labour interest groups, notably the unions. The MCH was under
considerable political pressure from the general public as well as higher levels of
government, c.f. the new Municipal Solid Waste Rules issued by the Ministry of Envi-
ronment and Forests in 2000, to pay more attention to the sector. Privatisation became
the only possible avenue to improve solid waste collection services both because of