The Hindu Business Line : Select municipal services in Orissa to be privatised

THE Government of Orissa has decided to outsource, in a phased manner, select municipal services in the State such as garbage collection, sweeping and cleaning of roads, billing and solid waste disposal.

A pilot project covering 14 wards under the Bhubaneswar Municipal Corporation has already been launched and tender papers floated for cleaning of roads and garbage collection.

Talking to Business Line, Orissa's Minister for Urban Development & Public Enterprises, Mr K.V. Singh Deo, said several companies - including Jamshedpur Utilities & Services Company Ltd - and non-government organisations had shown interest in participating in what is effectively going to be privatisation of urban civic services. If successful, the experiment would be showcased and replicated in the two municipal corporations and 102 municipalities and notified area councils across the State within the next few years.

The Minister said that while the State had no role model to adopt in this regard, concerted efforts were being made to educate the public on the imperatives for outsourcing select municipal services. "There is a directive from the Centre to State Governments to consider outsourcing of select municipal services in view of the resource crunch faced by many of them," he said.

Under the proposed outsourcing model, households would be asked to pay a nominal amount for the civic services availed. For example, for garbage collection, it could be as low as Rs 10 per month per household. At present, however, no charge is levied by the BMC for garbage collection. "There is likely to be some resistance. We need to educate the public. People must realise and understand that they must pay if they desire quality services from the municipal authorities," Mr Singh Deo said.

He clarified that water services and its management would not be outsourced "because if there is any unfortunate incidence of contamination, then the Government would be held liable".

According to him, the Government would decide the money that would be charged for each specific service. In some areas, multiple service providers would be engaged to facilitate competition among them.

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