Evaluating financial aspects of Municiapl solid waste management in Mysore, India

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302 Int. J. Environmental Technology and Management, Vol. 13, Nos. 3/4, 2010

Copyright © 2010 Inderscience Enterprises Ltd.

Evaluating financial aspects of municipal solid wastemanagement in Mysore City, India

Ishwar Chandra Yadav*

Centre of Advanced Study in Botany,

Banaras Hindu University,

Varanasi 225001, UP, India

Email: [email protected]

*Corresponding author

Ningombam Linthoingambi DeviSchool of Environmental Studies,

China University of Geoscience,

Wuhan, Hubei 430074, China


Surendra Singh

Centre of Advanced Study in Botany,

Banaras Hindu University,

Varanasi 225001, UP, India


A.G. Devi Prasad

Department of Studies in Environmental Science,

University of Mysore,

Mysore 570006 India


Abstract: Majority of waste management plans are severely constrained by thelack of resources to finance these services. In developing countries, collectionand transportation of waste are the most costly Solid Waste Management(SWM) activities. Safe disposal invariably receives less attention. Mysore City,one of the largest cities of Karnataka (India) with a population of around

0.8 million, is facing acute shortage of funds to run SWM activities. Present paper analyses the current financial aspects of Mysore City municipal SWM based on empirical studies as well as authentic data obtained from Mysore CityCorporation (MCC). The study revealed that the financial allocation for SWMis inadequate and MCC is running in deficient finance.

Keywords: MCC; Mysore City Corporation; expenditure; fiscal year; MSWM;municipal solid waste management; management and handling rules; pourakarmika; RWA; resident welfare association; KUIDP; Karnataka UrbanInfrastructure Development Plan; SHG; self-help group.



Evaluating financial aspects of MSWM 303

Reference to this paper should be made as follows: Yadav, I.C., Devi, N.L.,

Singh, S. and Devi Prasad, A.G. (2010) ‘Evaluating financial aspects of municipal solid waste management in Mysore City, India,’ Int. J. Environmental Technology and Management , Vol. 13, Nos. 3/4, pp.302–310.

Biographical notes: Ishwar Chandra Yadav did his MSc in EnvironmentalScience (gold medallist) from University of Mysore, Mysore, India. Currently,he is pursuing his PhD on groundwater arsenic contamination in Terai, Nepal,at Centre of Advanced Study in Botany, Banaras Hindu University, Varanasi,India. His areas of interest are solid waste management, groundwater pollutionand waste water treatment.

Ningombam Linthoingambi Devi received her MSc in Environmental Science(gold medallist) from University of Mysore, Mysore, India. Presently, she is pursuing her PhD in Environmental Science at China University of Geosciences(CUG), Wuhan, China. Her areas of interest are problems of pesticide in

atmosphere, solid waste and wastewater treatment.

Surendra Singh is presently a Professor in Botany at Banaras Hindu University,Varanasi, India. He specialises in microbial biotechnology, especially agricultureand environmental biotechnology.

A.G. Devi Prasad is currently a Senior Assistant Professor of EnvironmentScience at University of Mysore, Mysore, India. He specialises in conservation biology and waste management.

1 Introduction

City waste management is important for public health and their well-being (Gupta et al.,

1998; Kansal et al., 1998; Singh and Singh, 1998; Kansal, 2002; Jha et al., 2003; Ray

et al., 2005; Sharholy et al., 2005; Rathi, 2006), and also on the sustainability of urban

economies (Schubeler et al., 1996). Municipal Solid Waste Management (MSWM) is mainly

the responsibility of local governments and Urban Local Bodies (ULB) (Report of Indian

Supreme Court’s Committee, 1999). In developing countries, it consumes 20–50% of

municipal budgets (Goel, 2008). MSWM is a complex task depending upon organisation

and cooperation between households, communities, private enterprises and municipal

authorities, as well as on the selection and application of appropriate technologies related

to waste collection, transportation, recycling and disposal (Goel, 2008). In developing

countries, majority of the cities have inadequate waste management system. A great

many people do not have access to a waste collection service, and only a part of the

generated waste is actually collected (Schubeler et al., 1996; Diaz, 2009). From the

environmental, economical and financial points of view, systems for transfer, recycling

and disposal of solid waste are unsatisfactory (Schubeler et al., 1996). In a study (Green

India 2047), the Tata Energy Research Institute (TERI) reported that more than 25% of

the total waste remains uncollected. Moreover, transportation and disposal of collected

waste are also inadequate and unscientific (Das et al., 1998; TERI, 1998).

Financial aspects of MSWM include budgeting, cost accounting, capital investment,

cost recovery and cost reduction (Schubeler, 1997). Though they are essential for effective

MSWM, effective methods of budgeting, cost accounting, financial monitoring and financial



304 I.C. Yadav et al.

evaluation are rarely employed for Indian cities (Srivastava et al., 2005). Further, majority

of the Indian cities do not have proper data on due budget for SWM (Kumar et al., 2009).Available information (provided by civic agency) indicates that only 5–25% of total

municipal budget are spent on SWM (Kumar and Gaikwad, 2004). Main options for

financing capital investment for MSWM include local budget resources, loans from financial

intermediaries and special central government loans or grants. However, attempts should

also be made to procure funds from the local resources.

Main options for financing recurrent MSWM costs are user charges, local taxes and

intergovernmental transfers. To achieve equitable service access, some degree of cross-

subsidisation and financing out of general revenues is often needed. Fee collection of

MSWM in India is poor (Kumar et al., 2009). Generally, collected revenues flow into a

general municipal account, where they tend to be absorbed by overall expenditures.

Political will and autonomous accounting procedures are required to ensure that MSWM

revenues are employed for the intended purpose. Potential for increasing MSWMrevenues is limited. Cost reduction principle (doing more with less) may be applied to

improve financial sustainability.

Palmer et al. (1997) studied three price-based policies, namely deposit/refunds, advance

disposal fees and recycling subsidies for solid waste reduction, with deposit/refund as the

most effective. Here, an attempt has been made to analyse the present financial situation

of MSWM in Mysore City (India).

2 Sources of income in Mysore City Corporation

The total investment for MSWM in Mysore City is funded through a combination of the

following sources:

• funding under Jawaharlal Nehru National Urban Renewal Mission (JNNURM);

• from state government grants/loans;

• Mysore City Corporation’s (MCC’s) own revenues, which include property tax

(house tax), water tax, sewerage/drainage/conservancy tax, city cleaning tax, fees

for granting building plans, advertisement through hoardings, rents from municipal

properties, license fees from various trades and parking;

• debt from banks and other financial institutions and

• from private sector/commercial capital.

The share of state government in the total capital receipts of MCC has been declining, i.e.

from Rs. 283 million in the Fiscal Year 2002 (FY02) to Rs. 164.3 million in the FiscalYear 2005 (FY05). But, share of financing institutions has increased from Rs. 77.1 million

(FY02) to Rs. 155.8 million (FY05). The amount of grants/fund received from state

government and financial institutions during various fiscal years is given in Table 1.

However, capital expenditure for MCC remained almost constant during the fiscal year

2002–2005 (Table 2).




Table 1 Grants share of state government and financial institutions

Capital receipt (in Rs. millions)

Year State government (grants and loans) Financing institutions Total

FY 2002 283.0 77.1 360.1

FY 2003 211.5 113.2 324.7

FY 2004 153.9 170.6 324.5

FY 2005 164.3 – 320.1

Source: City Development Plan (2006)

Table 2 MCC Capital expenditure

Year MCC capital expenditure

(in Rs. millions)FY 2002 344.1

FY 2003 410.5

FY 2004 400.9

FY 2005 365.7

Source: City Development Plan (2006)

3 Current SWM practice in Mysore City

The total quantity of municipal solid waste generated in Mysore City (from 65 wards) is

about 220 tonnes per day. The MCC has placed about 3131 public dustbins; with

collection efficiency nearly 80%. An aerobic composting plant has been set up under the

Karnataka Urban Infrastructure Development Plan (KUIDP) for treating this MSW. The

compost generated is sold in reasonable price. The MCC does not have a scientific

landfill as per MSW (Management and Handling) Rules, 2000.

3.1 Primary collection

At the time of data collection, 90 pushcarts have been deployed for collecting solid

wastes from the wards. The total number of staff engaged in SWM activities in the city is

given in Table 3. The service charges levied are in the range of Rs. 10–15 per month per

house. Coordinating agencies for the door-to-door collection have been constituted from the

Resident Welfare Association (RWA) of the area. Ward committees and Non-Governmental

Organisations (NGO) have taken the overall responsibility of primary collection in their respective ward. These agencies in turn employ Self-Help Groups (SHG) for door-to-door

collection. This also helped local self-groups in earning income. Table 4 gives expenditure

of equipment required for municipal staff for the sweeping activities estimated using the

standard prescribed by state policy.




Table 3 Staff available for SWM

Sl. no. Staffs Number 1 Health Officer 1

2 Dy. Health Officer 1

3 Senior Health Inspector 4

4 Junior Health Inspector 18

5 Conservancy Defenders 42

6 Pourakarmikas (PK) 787

7 PKs on time and Grama Panchayath 16

8 Drivers 23

Source: MCC (2005)

Table 4 Expenditure on SWM in Mysore City (Rs. in millions)

Sl. no. Items2003–2004

Actual 2004–2005 Revised

2005–2006 Budgeted

1 Purchase of shoes, gum boots 0.196 0.20 0.20

2 PK salary 56.468 60.00 61.0

3 Contingencies 0.002 0.005 0.005

4 Vehicle maintenance 4.866 3.00 3.0

5 Fuel expenses 6.615 7.85 8.50

6 Contract 14.902 18.85 19.60

7 Purchase of heavy vehicles 0.00 1.50 2.00

8 Construction of houses of PK 0.00 0.00 0.50

Total 83.049 91.405 94.805

Source: Yadav and Devi (2009)

3.2 Secondary storage

There were nearly 20 secondary storage bins placed at commercial areas of the city.Secondary storage bins (dumper bins) were transferred using dumper placers to theaerobic composting plant located at Vidyaranya Puram, about 6 km away from the city.

3.3 Transportation

Solid wastes collected from different areas were transported to disposal site by tractors andmini-lorries with tipping mechanism and dumper placer. Collected SW was manually loaded

onto vehicles by 5–6 pourakarmikas (sanitary workers). Following types of vehicle wereused:

• 21 tractor trailer with carrying capacity of three tonnes;• truck (four MCC and 25 contractors); carrying capacity of 5 tonnes, and three trips

by each vehicles and

• two dumper placers.

3.4 Treatment and disposal

The centralised compost plant of the city has a capacity of handling 200 tons of waste per

day. Another waste processing facility located at Kumbarakoppal can handle about 2 tons of

waste per day. There was also a small vermicomposting facility at Mysore Zoo in the city.




4 Expenditure on MSW management in Mysore City

The expenditure of the MCC on SWM has increased over the years. During the study

period, it was Rs. 900 million (Table 5). The annual SWM budget was around Rs. 9 million,of which salary accounts for 64.1%, contracts account for 20.6% and fuel expenses

accounts for 8.9% of the total costs. Further, 3.1% of the budget was spent on vehicle

maintenance and 2.6% for provision for infrastructure. The cost of SWM at Mysore is

Rs. 1193 per tonne of waste. The overall expenditure on SWM is given in Table 6.

Table 5 Budget of MCC (Rs. in millions)

Items2003–2004

Actual 2004–2005 Revised

2005–2006 Budgeted

Opening balance 61.22 36.29 3.77

Income 693.12 778.62 903.60

Expenditure 718.05 811.14 906.19

Closing balance 36.29 3.77 1.18

Source: Yadav and Devi (2009)

Table 6 Tools required and investment on SW facilities

Sl. No. Items Number Cost per unit (in Rs.) Amount (in Rs.)

(A) For street sweeping

1 Handcarts with six bins 168 6500 1,092,000

2 Long handle broom 6720 125 840,000

3 Metal tray 1680 100 168,000

4 Metal plate 1680 25 42,000

5 Ghamela 336 130 43,680Total 2,185,680

(B) For slums

1 No. of 40 l HDPEcontainers

937 225 210,825

2 No. of handcarts 30 6500 195,000

Total 405,825

(C) 100 l litter bins 400 3100 1,240,000

(D) Primary collection vehicles for SHG (156 groups for non-slum households)

1 Handcarts with six bins 342 6500 2,223,000

2 Tricycle 177 15,500 2,743,500

3 Auto tipper 59 210,000 12,390,000

Total 17,356,500

(E) Secondary storage containers and transportation

1 3m3 containers 100 49,500 4,950,000

2 4.5m3 containers 100 58,000 5,800,000

3 DP vehicle 15 1,039,500 15,592,500

Total 26,342,500

(F) Construction of Platforms 200 5400 1,080,000

Grand Total 39,932,255

Source: MCC (2005)




5 Strategies to improve financial situation

It is necessary for the municipalities to adopt strategies that meet MSW (M&H) Rule,

2000. Segregated collection should be introduced as part of the door-to-door collection

system, with wet waste being collected daily in the morning and dry wastes being

collected twice a week in the afternoon. Likewise, a combination of decentralised and

centralised processing will also be helpful. The wastes, which cannot be composted or

recycled, should be landfilled.

6 Results and discussions

For effective management of solid wastes, infrastructure facilities for storing, transporting

and dumping the wastes are needed. Generally, number of dustbins used for collectingwastes is inadequate. Moreover, their capacities vary from 540 to 1100 l, which is difficult

to maintain (KUIDFC, 2003). One of the reasons behind poor management of solid

waste in Indian cities is lack of adequate financial resources (Kumar, 2005). Financial

effectiveness of MSWM systems is based on life cycle costs and long-term economic

impacts. Therefore, financial valuation is an important input to the strategic planning and

investment programming.

In India, an SWM revolution is a need of the hour. The allocation of funds for MSW

management in Mysore is inadequate (Yadav and Devi, 2009). Further, bulk of the financial

allocations goes to salaries of staff and transportation. A little amount is available for the

treatment and disposal of wastes (Yadav and Devi, 2009). Negligible amount of tax or

user fee are charged from the residents of the cities. In India, the cost of treatment and

disposal of hazardous and biomedical wastes is high, and often cannot be afforded

by small-scale industries and smaller healthcare establishment (GOK, 2004). Mysore

Municipal Corporation faces resource constraints, and is unable to bear the cost of

collection, transportation and disposal of waste resulting in neglect of waste

management. Besides, inappropriate design of treatment and disposal systems and poorly

trained operator are other factors aggravating the problem in Mysore City. Treatment and

disposal cost of unsegregated waste is more expensive compared to that of segregated

waste. According to Karnataka Compost Development Corporation, composting of

unsegregated waste needs 30% extra cost than the segregated waste (GOK, 2004). Thus,

mixed waste coming from areas requires high investment. Only three authorised waste

processing units are available in the Mysore City. A study indicates that the present

system of MSWM in Mysore City is not satisfactory and requires implementation of

MSW (M&H) Rule 2000 in an integrated manner (Yadav and Devi, 2009).

Further, the corporation will have to adopt relatively better tax collection, property taxreform and utilisation of assets/land in an appropriate manner in order to generate revenue,

by applying new cess/levies, such as solid-waste cess, impact fee for new development,

parking revenues, etc. MCC should also encourage private participation. To improve the

financial situation of MCC, the following recommendations should be implemented:

• the need to have accurate information on the sources and composition of industrial

and commercial wastes including hazardous wastes;

• identification of priority areas;




• inter-se priority among obligatory services;

• improvement in property tax collection efficiencies and increase in property tax

collections (Madon et al., 2004);

• continuous reviewing of the existing rate and charges;

• active involvement/participation of NGO/private sector in SWM activities;

• regular reviewing of establishment costs;

• adoption of Excellent Novel Radical’s (ExNoRa’s) zero waste management scheme

(Colon and Fawcett, 2006);

• implementation of ‘polluter pays’ principle (Karagiannidis et al., 2008);

• implementation of ‘pay-as-you-throw’ scheme (Karagiannidis et al., 2008);

• policies should be introduced which encourage waste recovery and reuse;

• internalisation of the costs of waste management in the production and distribution

phases and

• use of remote sensing, Geographical Information System (GIS) and mathematical

optimisation methods for efficient allocation and utilisation of resources.

Acknowledgements

The present work is a part of MSc dissertation of ICY. The authors are thankful to MCC

staffs for providing relevant information.

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Evaluating financial aspects of Municiapl solid waste management in Mysore, India

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