Mumbai, August 7, 2025 – In a significant policy reversal, the Brihanmumbai Municipal Corporation (BMC) announced on Tuesday that it will discontinue the outsourcing of waste management for bulk waste generators (BWGs) across Mumbai within the next seven days. This decision marks a return to the BMC being solely responsible for managing waste from housing societies and commercial complexes generating over 100kg of waste daily, a task previously outsourced to third-party agencies since 2016.
The move comes after a July inspection by the BMC revealed widespread irregularities and lack of genuine waste processing by these empanelled agencies. “Of the 20 agencies processing waste for these bulk waste generators, most were found to be slyly redirecting the waste in the BMC’s landfill, largely by dumping it in slums. In most cases, no processing was actually happening,” stated Kiran Dighavkar, the Deputy Municipal Commissioner for Solid Waste Management. He further elaborated that these agencies continued to charge an average fee of ₹150 per flat from BWGs despite their failure to process waste effectively.
The BMC’s inspection unearthed several concerning findings. The 20 agencies collectively cater to 335 BWGs, but with a disproportionate distribution. While two agencies serviced only a single BWG each, M/s. Pruthvi Enviro Solution handled 53 BWGs, and M/s S. K. Biotech managed a substantial 78. Despite this, their combined wet waste processing capacity was a mere 69 TPD (tonnes per day).
Furthermore, the inspection raised serious questions about the agencies’ infrastructure. Six agencies operated from processing areas under 1,000 sqft, with another four having less than 2,000 sqft. Many facilities were found to be clustered together, with nine having galas at the Kurla Scrap Association in Mandale Village and four others situated in Dharvali, Malvani, Malad West. Most of these sites were temporary or tin sheds and were observed to be in unhygienic conditions.
These observations led the BMC to conclude that the agencies were claiming to process far more wet waste than their actual capacity allowed, and that “these agencies were found not to have the capacity for waste processing or doing any scientific processing,” Dighavkar emphasized.
Going forward, the BMC will transport wet waste from BWGs to its dumping ground in Kanjurmarg and dry waste to its dry waste segregation centres. Deputy Municipal Commissioner Dighavkar indicated that while the immediate step is discontinuation, the BMC may revisit its rules and supervision to potentially allow outsourcing to restart in the future.
For several months since April, the BMC has not been renewing the yearly licenses of these third-party agencies, though they were permitted to operate until now. Natasha D’Costa, founder of SUN (Start Upcycling Now), a company involved in waste processing for several BWGs, expressed concern about the future of her enterprise. She highlighted the value proposition offered by such agencies: “The reason housing societies pay us for collecting their segregated waste is because they trust us to scientifically process their waste. In return, we pay them for their dry waste which goes to recycling, which is why they hand us their dry waste in a good condition.” D’Costa also voiced a common apprehension among residents, noting that “Households tend not to segregate their waste if it is going to the BMC, as it is often seen that the BMC mixes the segregated waste, putting their efforts to waste.”
