Neel Metal Fanalca: Some extracts of contract with Chennai Corporation

A report in The Hindu today indicates that the operations of Neel Metal Fanalca in Chennai are set to expand. Pulianthope will now be covered by NMF, the concessionaire that won the contract to manage the municipal solid waste in the city, in selected zones.

As I have pointed out in the past, the Chennai Corporation, which bears responsibility to implement the Municipal Solid Waste Management Rules 2000 has so far not taken necessary steps to ensure the implementation of the rules on the ground. It has included clauses that seem to meet the rules prescribed, but in the absence of a clear chain of disposal for all categories of waste, there is no clarity on whether it is meeting the obligation and whether the TN Pollution Control Board is ensuring that it does.

The Chennai Corporation has stated on the record that it has not been filing annual reports to the TNPCB or Central Pollution Control Board, which is an egregious violation of the law.

Evidence from the dumping ground in Perungudi indicates that the Chennai Corporation, through its concessionaire is actually violating the MSW Rules 2000. NMF has no means to complete the disposal either, at present.

While a clear picture emerges on Chennai’s compliance with the MSW rules, I am presenting a set of original pages from the Agreement signed by Neel Metal Fanalca and the Chennai Corporation on consumer related aspects. These pages form part of the full document, which is available with this blog, obtained under the Right to Information Act, 2005. They come to a very large file size, hence only individual pages are presented here for the moment. The full document will be uploaded soon after they have been stitched into a booklet. At the moment, I have no option but to post the consumer-related information as individual page PDFs.

  • A key point that emerges from the document is that NMF’s payment is determined after taking into account grievances recorded by the public with a telephonic facility that the private company is to provide in each zone. The payment is determined on a daily basis, according to the documents, and allocated weightage points for each aspect of the garbage collection and removal. A list of definitions is also available.
  • MSW Definitions
  • Operational obligations of Neel Metal Fanalca
  • How payment to Neel Metal Fanalca is to be calculated
  • Penalties and fines
  • Performance evaluation and complaints mechanism
  • Format for performance evaluation – I
  • Format for performance evaluation – II
  • Format for performance evaluation – III
  • Obligation for Neel Metal to use Community-Based Organisations
  • Clauses on weighment and calculation of waste
  • Force Majeure and consequences
  • For Majeure and consequences – II
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    1. Thank you very much for posting this important information.
      I am trying to find out how much NMF has been paid by the Corporation of Chennai for any given period, and the population that has been served during that period.

      Do you have this information?

      Exnora Green Pammal, which provides waste collection services in Pammal municipality is repeatedly being told that they are too costly. But they are paid on the basis of each house they serve, not per ton of garbage that they transport.

      I would like to compare the costs of EGP with NMF to find out which model is less costly, but I need to find a common denominator.

      I also need to know the population or number of residences served by NMF for the given period of payment.

      Can anybody help me find such information?


    2. The key clause is 6.2.1b. which requires Neel Metal Fanalca to collect and segregate the waste. Obviously they are not…who cares? Its amazing that we can sit back and let such blatant violations go on and on…


    3. Dear G. Ananthakrishnan,

      You have made very good use of the RTI Act. Thank you for posting your important RTI request and the response that you received from the Corporation of Chennai (CoC). This has done much to increase the transparency of waste management contracting in Chennai.

      Unfortunately, solid waste management is a very neglected subject in India, and very little information is available.

      I’m trying to develop a baseline for comparing the cost-effectiveness of swm services by different contractors in Chennai. I’d like to compare the cost of the services provided by Exnora Green Pammal, which peforms daily door-to-door collection of source-segregated waste, against the cost of services of Neel Metal Fanalca, which collects mixed waste from street bins and dumps such mixed waste in Chennai’s dumpsites.

      For such comparison, I need the following information from NMF or from the CoC:

      How much money has the CoC paid to NMF for any given period?
      How much waste has NMF collected and transported for that period?
      What is the population or number of households that NMF serves?

      Would you please submit an RTI request to the CoC for this information? As a foreigner, I am not permitted to submit an RTI request, even though I have lived her for over 15 years.

      I’ve written to the JBM Group, Neel Metal Fanalca’s parent company, in Haryana, but received no reply. Naturally, corporations won’t be transparent about any aspect of their business.

      I would like to establish a baseline to determine which type of service provider/service model is more cost effective for the Indian taxpayer.

      Your help in this matter would be very deeply appreciated.


      Brooks Anderson


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