The Hindu Business Line : New contractor promises to clean up Chennai

Mounds of garbage all over with animals rooting around have become a common sight in the city over the last couple of weeks letting the beholder to a conclusion that the new garbage contractor, Neel Metal Fanalca, is doing a bad job in contrast with its predecessor, Onyx. But there is more to it than meets the eye.

The blame seems to be spread all over. First, the Corporation of Chennai failed to float a tender to select a garbage picker for the next seven years. As per its agreement with Onyx, the Corporation was entitled to float the tender anytime from February 2006, exactly a year before the Onyx contract would end. The Corporation did not do that. Sources cite Assembly elections being round the corner as the reason.

Sometime around November, realising that time was running out, the Corporation requested Onyx to extend its services by nine months, or till October. Onyx refused initially, but after some persuasion, it agreed to a six-month extension — till August.

Onyx reckoned it would comfortably win a bid for another seven years.

As it happened, four companies quoted a rate below Onyx’s and the best bidder turned out to be Neel Metal Fanalca, a joint venture of Neel Metal of New Delhi, and Fanalca, a Columbia-based company.

This is the first foray into garbage picking for Neel Metal as well as for the joint venture company, although Fanalca has been in this business in some countries in South America. Neel Metal, a part of a Rs 2,000-crore group is into sheet metal business just like Fanalca. Fanalca wanted to get into garbage collection in India and Neel Metal was the natural choice for a partner.

Neel Metal said at a press conference in Chennai last week that on the first day, when it was geared to pick up a day’s garbage, it found about a week’s garbage piled up.

Meanwhile, realising that Neel Metal Fanalca may have difficulties in the first few weeks, the Corporation requested Onyx to carry on for 45 days, but it refused.

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