Private Investment in SWM: Case study of South Indian City.

Private Investment in SWM: Private Investment in SWM: Case study of South Indian City.Case study of South Indian City.

Prof.Biju Varkkey IIMA

MSWM characteristicsMSWM characteristics

Public good nature (public health)Public good nature (public health) Experience indicates cost recovery Experience indicates cost recovery

a problem.a problem. General public monopoly.General public monopoly. Easy to unbundleEasy to unbundle..

Four distinct phasesFour distinct phases Waste generation point.Waste generation point. Collection, Storing and Collection, Storing and

transportation.transportation. Treatment.Treatment. Residue Management.Residue Management.


Options for Solid Waste Options for Solid Waste DisposalDisposal

Crude Dumping.Crude Dumping. Sanitary Land Filling.Sanitary Land Filling. Incineration. (Incineration. (burningburning)) Pyrolysis. (Pyrolysis. (heating to 600 - 1000 Cheating to 600 - 1000 C)) Pelletisation.Pelletisation. Biomethanation.Biomethanation. Composting.Composting.


Technology/Handling Options:Technology/Handling Options:

Waste to Waste (Waste to Waste (ManageableManageable) ) ((categorisation/optimisationcategorisation/optimisation).).

Waste to EnergyWaste to Energy Waste to Manure/Fertilizer.Waste to Manure/Fertilizer. Waste Reuse.Waste Reuse. Waste to Waste to Gas/SlushGas/Slush: :


A future challenge.A future challenge.

Still to effectively address the Still to effectively address the emerging issue of E waste.emerging issue of E waste.

Currently, it resides in the corner of Currently, it resides in the corner of our houses or are sold to the second our houses or are sold to the second hand market.hand market.

Stripped down parts ends up in SW Stripped down parts ends up in SW dumps.dumps.

Proportions bound to increase.Proportions bound to increase.


CASE STUDY:CASE STUDY: POABS GREEN ENVIROTECH POABS GREEN ENVIROTECH

LTD.LTD.


The foundation stoneThe foundation stone

Sir. C. P. Ramaswamy Iyer (Diwan* of Sir. C. P. Ramaswamy Iyer (Diwan* of

Kerala (Kerala (1936-19471936-1947), - heavily fined shop ), - heavily fined shop owners, if their customers spilled garbage owners, if their customers spilled garbage (banana skins etc) into the streets. This is (banana skins etc) into the streets. This is reflected even today, all the shops carry a reflected even today, all the shops carry a tin case as refuse bin to keep their city tin case as refuse bin to keep their city clean ! clean !

(Source: www-2.cs.cmu.edu/afs/cs/user/vipin/www/trivandrum.html(Source: www-2.cs.cmu.edu/afs/cs/user/vipin/www/trivandrum.html))

*Diwan-Chief Minister *Diwan-Chief Minister


Runup to the project :-Runup to the project :- Trivandrum the capital city had the distinctionTrivandrum the capital city had the distinction of being amongst the cleanest cities in India. of being amongst the cleanest cities in India. Lack of up gradation of public infrastructure, Lack of up gradation of public infrastructure, to suit city growth led to inefficiency in SW management .to suit city growth led to inefficiency in SW management . The major landfill site in use had the location The major landfill site in use had the location

disadvantage of proximity to the international airport disadvantage of proximity to the international airport (Bird (Bird Hit/Security).Hit/Security).

The entire process of collecting waste , cleaning roads and The entire process of collecting waste , cleaning roads and drains etc., were responsibilities of the corporation.drains etc., were responsibilities of the corporation.

SC judgment on SWMSC judgment on SWM `Clean city movement’ was embarked on by the `Clean city movement’ was embarked on by the

corporation. corporation. Decided to set up a processing plant in the land owned by Decided to set up a processing plant in the land owned by

corporation the village. The proposed land was alongside corporation the village. The proposed land was alongside a steep hill. a steep hill.

Technology - Undecided, but preference for aerobic Technology - Undecided, but preference for aerobic decomposition by Excel Industries, Mumbai.decomposition by Excel Industries, Mumbai.

Floated open tender for SWM plant. Selection by a Floated open tender for SWM plant. Selection by a committee.committee.


The InvestorThe Investor

Family owned group with interests in Family owned group with interests in construction, farming etc.construction, farming etc.

Manages one of the largest organic farms Manages one of the largest organic farms in Kerala, with international market for in Kerala, with international market for products.products.

Familiar with the technology – with Familiar with the technology – with different inputs.different inputs.

Saw the project as natural extension, part Saw the project as natural extension, part of international brand building for the of international brand building for the organic products.organic products.


Technology:Technology:

Aerobic: In the presence of Oxygen, Aerobic: In the presence of Oxygen, exothermic, without smell. exothermic, without smell.

Bacterial Action.Bacterial Action. Temp rises to 80C that neuteralises Temp rises to 80C that neuteralises

pathogens.pathogens. Needs undecomposed waste, organic Needs undecomposed waste, organic

only.only.


Getting the project through:Getting the project through:

Project conceived on BOOT basis. After detailed feasibility Project conceived on BOOT basis. After detailed feasibility study - estimated cost was Rs 90 million – decided to study - estimated cost was Rs 90 million – decided to withdraw.withdraw.

Soaps offered by corporation and GOK.Soaps offered by corporation and GOK. Pending bills to group on construction to tune of Pending bills to group on construction to tune of Rs 5 crore will be cleared, bypassing payment freeze.Rs 5 crore will be cleared, bypassing payment freeze. Can pledge the land to banks if required.Can pledge the land to banks if required. GOK will buy fertilizer from the plant.GOK will buy fertilizer from the plant. Priority in obtaining licenses/clearances.Priority in obtaining licenses/clearances. Royalty of 2% of sales to corporationRoyalty of 2% of sales to corporation.. Rs 49000 per day (average of 10 days) penalty for Rs 49000 per day (average of 10 days) penalty for Corporation employees will transport the waste to company.Corporation employees will transport the waste to company. Company can reject waste, if it is not of quality.Company can reject waste, if it is not of quality. Company keeps, waste resale realization – if any.Company keeps, waste resale realization – if any. Agreed to Design alterations to customize the plant , like Agreed to Design alterations to customize the plant , like

cover the plant with proper roofing to operate in wet climatic cover the plant with proper roofing to operate in wet climatic conditions in Kerala.conditions in Kerala.


Plant constructionPlant construction

Company encouraged to start construction Company encouraged to start construction at earliest.at earliest.

Plant constructed in record 5 months time, Plant constructed in record 5 months time, instead of proposed 18 months.instead of proposed 18 months.

Capacity of plant 400 tonnes per day. Capacity of plant 400 tonnes per day.

Corporation’s support systems (Corporation’s support systems (like buying like buying

lorries etc) lorries etc) notnot yet readyyet ready


Community Opposition – 1Community Opposition – 1

Did not want city waste in the village.Did not want city waste in the village. Protest against the corporation apprehending:Protest against the corporation apprehending:

Land price decrease.Land price decrease. Smell and pollution of fresh water sources. Smell and pollution of fresh water sources. Social and environmental effects.Social and environmental effects.Mitigation effort.Mitigation effort. Corporation sponsored study tour to VijayawadaCorporation sponsored study tour to Vijayawada..

Community Opposition - II. (Community Opposition - II. (after commissioning after commissioning the plant)the plant)

Protest shifted against the company.Protest shifted against the company. Air quality/health reasons/Water pollution.Air quality/health reasons/Water pollution. Fly and birds.Fly and birds. Decomposed waste spilling over. (open trucks)Decomposed waste spilling over. (open trucks) Social relationships.Social relationships. Land price down.Land price down.


Conflict resolution efforts.Conflict resolution efforts. Committee by District Collector never met Committee by District Collector never met

till the HC/ombudsman intervened.till the HC/ombudsman intervened. Agitation temporarily suspended after Agitation temporarily suspended after

corporation agreed to transport garbage corporation agreed to transport garbage only in night. Agreed to treat the waste at only in night. Agreed to treat the waste at source.source.

Buy more land from surroundings at Buy more land from surroundings at market price/Employment to local people.market price/Employment to local people.

Community participation initiatives.Community participation initiatives.


Fact finding missionsFact finding missions.. Internal StudyInternal Study Waste quality - already decomposed.Waste quality - already decomposed. Corporation employees were against.Corporation employees were against. Resource constraint for corporation. (trucks/ Resource constraint for corporation. (trucks/

untrained employees/equipment etc).untrained employees/equipment etc). PCBPCB interventions made the company to interventions made the company to

invest moreinvest more GOK appointed expert.GOK appointed expert.

Problem at waste collection side.Problem at waste collection side. Smell because of already rotten waste.Smell because of already rotten waste. Company still working on generator.Company still working on generator. Suggested community participation Suggested community participation

initiatives.initiatives.


Problems observed in Different Stages:Problems observed in Different Stages:

Generation & Collection Generation & Collection 1.1. Waste mixed at source. Waste mixed at source. 2.2. Quality of waste questionable.Quality of waste questionable.3.3. Waste generators liability.Waste generators liability.

4. Problems with Collection (done by the 4. Problems with Collection (done by the corporation)corporation)

Lack of sufficient biological inoculates for sanitation.Lack of sufficient biological inoculates for sanitation.

Lack of training of corporation staff. Lack of training of corporation staff.

Corporation failed to collect the requisite amount of Corporation failed to collect the requisite amount of garbage as per agreement. (only daily average of 100 garbage as per agreement. (only daily average of 100 tonnes, max was 150 tonnes.)tonnes, max was 150 tonnes.)

Unchecked Scavenging at source.Unchecked Scavenging at source.


StorageStorage and Transportation and Transportation

Performed by corporation.Performed by corporation.

Intermediate storage and haul time leads to Intermediate storage and haul time leads to deterioration of waste quality.deterioration of waste quality.

Transportation and storage bottlenecks.Transportation and storage bottlenecks. Environmental and social sensitivity during Environmental and social sensitivity during

storage and transit.storage and transit.

Community Involvement – building cooperation Community Involvement – building cooperation with residents associations.with residents associations.

Involvement of self help groups. (charges the Involvement of self help groups. (charges the generator).generator).


Processing and output marketing. Processing and output marketing.

Suitability of technology and location of Suitability of technology and location of plant.plant.

Problems in disposing accumulated Problems in disposing accumulated contaminants particularly plastic and sand.contaminants particularly plastic and sand.

Awareness about organic fertilizer minimal.Awareness about organic fertilizer minimal. Reluctance to buy the final product, Reluctance to buy the final product,

causing the end inspite of Govt order. causing the end inspite of Govt order. Marketing strategy and capacity of the Marketing strategy and capacity of the

promoter.promoter. Produce priced above average market rate. Produce priced above average market rate.


Current Situation.Current Situation.

Approz 15000 tons of fertilizer Approz 15000 tons of fertilizer accumulated. accumulated.

Efforts for BOT restructuring by GOK.Efforts for BOT restructuring by GOK. Promoter ready to give back the Promoter ready to give back the

project/sell.project/sell. Corporation owes Rs 5 crores to Corporation owes Rs 5 crores to

company as penalty.company as penalty.


Learnings:Learnings: Cost of Failure – first BOT project in Kerala. State Cost of Failure – first BOT project in Kerala. State

trying hard to get out of image trap.trying hard to get out of image trap. Concessions – rigor of analysis./Transparency.Concessions – rigor of analysis./Transparency. Time for issues to resolve – don’t rush.Time for issues to resolve – don’t rush. Unbundling, check the network effects. (unless Unbundling, check the network effects. (unless

upstream and downstream links are straightened.)upstream and downstream links are straightened.) Local Community / User group interface with Local Community / User group interface with

project.project. Central v/s decentralised processing.Central v/s decentralised processing.

State Government Employees/Interest Groups.State Government Employees/Interest Groups. Managerial ability of the promoter.Managerial ability of the promoter. Choice of appropriate technology.Choice of appropriate technology.

Appropriateness (aerobic v/s humid).Appropriateness (aerobic v/s humid). Recycling and reusing.Recycling and reusing.


Whose responsibility is SWM?Whose responsibility is SWM?

Multi agency / stake holder responsibility. Multi agency / stake holder responsibility. ((helpshelps, families, communities, schools, , families, communities, schools, health, health, tourism departments etctourism departments etc.).)

Sensitatisation of correct agents and Sensitatisation of correct agents and incentivising.incentivising.

Involvement of state employees – don’t Involvement of state employees – don’t reject them as inefficient – involve, reject them as inefficient – involve, incentivise. (let communities value them).incentivise. (let communities value them).

Appropriate choice of technology/method.Appropriate choice of technology/method.


Current Situation:Current Situation: Plant is partially functioning.Plant is partially functioning. The The PoabsPoabs Group issue notice to the civic body Group issue notice to the civic body

announcing its decision to close down the plant announcing its decision to close down the plant from October 15, 2004. from October 15, 2004.

Company demand a buy- back arrangement for Company demand a buy- back arrangement for the organic fertilizer made at the plant. (the organic fertilizer made at the plant. (October 8, October 8, 2004, Business line2004, Business line ) )

15,000 tonnes of unsold manure accumulated on 15,000 tonnes of unsold manure accumulated on the factory premises over the last 30 months, the factory premises over the last 30 months, preventing the intake of fresh preventing the intake of fresh garbagegarbage. .

Later group announced to keep the plant open Later group announced to keep the plant open till October 30, following an assurance from the till October 30, following an assurance from the Mayor, that the problems would be resolved Mayor, that the problems would be resolved soon. (soon. (October 12, 2004, Business LineOctober 12, 2004, Business Line))

GOK working on BOT agreement, restructuring.GOK working on BOT agreement, restructuring.

Date post:	23-Dec-2015
Category:	Documents
Upload:	brendan-blankenship
View:	223 times
Download:	0 times

Private Investment in SWM: Case study of South Indian City.

Documents