The BMC has sought a 216-day extension of its Mulund dumping ground biomining contract with M/s Bio Mining India Pvt Ltd to process an additional 7 lakh MT of legacy waste. The proposed work would cost Rs 55.86 crore at Rs 798 per MT and be awarded without fresh competitive bidding.

The BMC plans to continue biomining at Mulund after identifying 7 lakh MT of additional legacy waste at the dumping ground | AI Generated Image

Mumbai, August 24, 2026: The BMC administration has submitted a proposal to the Standing Committee seeking approval for a 216-day extension of the Mulund dumping ground biomining and remediation contract, which would keep the agreement with M/s Bio Mining India Pvt Ltd in force until April 19, 2027.

The extension is being sought after the civic body identified an additional 7 lakh metric tonnes (MT) of legacy waste at the site that requires processing.

The contractor has already completed the 70 lakh MT of legacy waste covered under the original contract. However, a subsequent contour survey and site assessment found another 7 lakh MT.

At the existing contractual rate of Rs 798 per MT, processing this additional waste is expected to cost the BMC approximately Rs 55.86 crore.

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The original six-year contract, approved in June 2018, had already been extended on account of disruptions caused by the Covid-19 pandemic, cyclones, heavy rainfall and fuel shortages, with the latest tenure set to end on May 27, 2026.

BMC Seeks Contract Extension

The BMC has recommended retaining the existing contractor, arguing that floating a fresh tender would delay the work and result in higher expenditure.

Project management consultant May Mitcon Consultancy and Engineering Services Ltd has stated that the additional waste can be processed using the contractor’s existing machinery, manpower and infrastructure, and has termed continuation of the existing arrangement economically beneficial and in the public interest.

A technical assessment by KPMG Advisory Services Pvt Ltd estimated the contractor’s average productivity at 3,240 MT per day, putting the time required to process the additional 7 lakh MT at approximately 216 days.

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The administration has further argued that the existing rate of Rs 798 per MT is more economical than prevailing market rates for similar work, making a fresh tender financially disadvantageous.

The proposal effectively seeks to extend an already extended contract and award an additional Rs 55.86 crore worth of work to the existing contractor without fresh competitive bidding.

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