Solid waste management in India is a major challenge due to the large and rapidly growing population, urbanization, and inadequate infrastructure. To finance and sustain solid waste management services, city administrators in India can adopt different financial and revenue models.

Some of the common financial and revenue streams in solid waste management in India are:

User fee model:

In this model, the city administration charges a fee from households and businesses for the solid waste management services provided to them. The fee can be fixed or variable based on the quantity of waste generated by the households or businesses. The user fee model can provide a sustainable revenue stream for solid waste management services and encourage households and businesses to reduce their waste generation.

Example of cities using the user fee model in India:

  • Bengaluru: The Bruhat Bengaluru Mahanagara Palike (BBMP) collects user fees for solid waste management from all households, apartments, and commercial establishments within its jurisdiction. The fees are collected based on the type of waste generated and the size of the property.
  • Pune: The Pune Municipal Corporation (PMC) charges a user fee for solid waste management to all households and commercial establishments. The fee is based on the type of waste generated and the quantity of waste produced.

Open market revenue streams:

City administrators can generate additional revenue streams by selling recyclable materials or byproducts of solid waste processing, such as compost or energy. The sale of recyclable materials can be done through auctions or contracts with private recyclers or waste processing companies. Similarly, compost or energy generated from solid waste can be sold to industries or households for their use. The open market revenue streams model can help offset some of the costs of solid waste management services and create job opportunities in the waste processing sector.

Example of cities using the open market revenue streams model in India:

  • Hyderabad: The Greater Hyderabad Municipal Corporation (GHMC) has implemented a solid waste management system that includes waste-to-energy plants, composting facilities, and recycling units. The GHMC generates revenue from the sale of energy produced by the waste-to-energy plants and the sale of compost and recyclable materials.
  • Surat: The Surat Municipal Corporation has implemented a waste-to-energy plant that generates electricity from the waste generated in the city. The electricity generated is sold to the Gujarat State Electricity Corporation, generating revenue for the municipality.

Public-private partnership (PPP) model:

Under this model, the city administration partners with private companies to provide solid waste management services. The private companies invest in infrastructure and equipment for waste collection, transportation, processing, and disposal, while the city administration provides regulatory oversight and monitoring. The PPP model can leverage private sector expertise and resources to improve the efficiency and effectiveness of solid waste management services.

There are several cities in India that have successfully implemented the PPP model for solid waste management.

Some examples include:

  • Indore: Indore, a city in the state of Madhya Pradesh, has implemented a PPP model for solid waste management in collaboration with a private sector company called Antony Waste Handling Cell. Under this model, Antony Waste is responsible for collecting and transporting waste from households and commercial establishments to the designated landfill sites. The company also provides waste segregation and recycling services.
  • Surat: Surat, a city in the state of Gujarat, has implemented a PPP model for solid waste management in collaboration with a private sector company called Hanjer Biotech Energies Pvt. Ltd. Under this model, Hanjer Biotech is responsible for collecting and transporting waste from households and commercial establishments to the designated landfill sites. The company also provides waste segregation and recycling services.
  • Bengaluru: Bengaluru, a city in the state of Karnataka, has implemented a PPP model for solid waste management in collaboration with a private sector company called Ramky Enviro Engineers Ltd. Under this model, Ramky Enviro is responsible for collecting and transporting waste from households and commercial establishments to the designated landfill sites. The company also provides waste segregation and recycling services.

Overall, the PPP model for solid waste management has been successful in several cities in India, as it has allowed for the efficient provision of waste management services while also promoting private sector participation in the sector. However, there are also some challenges associated with this model, such as ensuring transparency in the selection of private sector partners and the need for effective regulation and monitoring of their performance.

Grants and subsidies:

City administrators can also seek grants and subsidies from the central and state governments, multilateral organizations, or philanthropic foundations to fund solid waste management services. Grants and subsidies can help cover some of the capital and operational costs of solid waste management services, especially for low-income communities that cannot afford user fees.

One example of a grants and subsidies model for solid waste management is the Swachh Bharat Mission (SBM), launched by the Government of India in 2014. Under this program, financial assistance is provided to urban local bodies (ULBs) for various activities related to solid waste management, including procurement of equipment, construction of waste processing facilities, and community awareness campaigns. The funding is provided in the form of grants and subsidies, with ULBs required to provide a matching contribution.

For instance, in the city of Chennai, the SBM has provided a subsidy of 35% of the project cost for the construction of a waste-to-energy plant. Similarly, in the city of Bengaluru, the SBM has provided a grant of INR 61 crore for the construction of a new waste processing facility.

In addition to the SBM, other grants and subsidies models are also being implemented in India to support solid waste management initiatives. For example, the Atal Mission for Rejuvenation and Urban Transformation (AMRUT) program provides funding for various urban infrastructure projects, including solid waste management. Under this program, ULBs are required to prepare detailed project reports and submit them for approval, following which they receive grants for project implementation.

Moreover, many state governments in India also provide grants and subsidies for solid waste management initiatives. For instance, the government of Maharashtra has launched a scheme called the “Mukhyamantri Shuddha Paryavaran Yojana,” under which ULBs are eligible to receive grants for various activities related to solid waste management, including the procurement of equipment, construction of processing facilities, and the implementation of door-to-door waste collection.