Uncovered: Shortfall of ₹16 crores in waste user charge collection in Lucknow, according to CAG audit findings.
The Lucknow Municipal Corporation (LMC) has terminated its concessionaire agreement with Eco Green Private Limited, following a series of failures in the solid waste management system. The concessionaire, responsible for door-to-door solid waste collection, transportation, and processing, was blacklisted by the LMC due to non-compliance with the agreement.
The agreement, signed in 2017, stipulated that the concessionaire would collect user charges from residents and establishments on behalf of the LMC. However, a Comptroller and Auditor General (CAG) audit revealed that Eco Green Private Limited failed to carry out required information, education, and communication, and public awareness activities, leading to financial irregularities in the collection of user charges.
The audit, conducted between 2017 and 2021, exposed a loss of over ₹16 crore due to the concessionaire's inefficiencies. The LMC had set minimum recovery targets of 50%, 60%, and 75% for the first three years, respectively. However, out of the ₹49.15 crore in recoverable user charges during this period, only ₹32.88 crore was actually collected.
In response to the audit, the state government acknowledged the concessionaire's failures and threatened to take appropriate legal action. The government also revealed a pattern of contractual non-compliance and poor financial oversight in the solid waste management system.
Mukesh Singh Chauhan, a corporator, expressed concerns about accountability in public-private partnerships in the sanitation sector, emphasizing the need for transparency and efficiency in such collaborations. The municipal commissioner, Arvind Rao, confirmed the termination of the contract with Eco Green Private Limited.
The LMC continued to pay the full tipping fee to the concessionaire every month, violating the agreement by not deducting the uncollected user charges. The agreement empowered the municipal body to withhold payments in case of collection failure. The government has imposed penalties on the defaulting concessionaire, and it remains to be seen who will take over the solid waste management responsibilities in Lucknow.
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