Municipal Solid Waste Processing Treatment Management Facility

EOI publication / download start

EOI is downloadable from 14.08.2026; bid submission also starts on that date.

• Tender Data Sheet S.No 1 and 5 both state Dt.14.08.2026.

Pre-bid meeting and query deadline

Pre-bid meeting and last date for receipt of queries are both 19.08.2026; original response-to-queries date was 20.08.2026.

• Venue: 1st Floor Conference Hall, O/o. Khammam Municipal Corporation.
• Pre-bid conference table elsewhere states time 11:00 AM at Commissioner, Khammam Municipal Corporation (date cell blank in that table).
• Revised pre-bid query responses were later issued on 08.09.2026 3.00 PM (Corrigendum 3).

Bid submission deadline and technical opening

EOI states last date for bid submission and technical bid opening as 02.09.2026; bids due before 15:00 hours IST. Date corrigenda exist but no amended calendar date is printed in the available tender files.

• Clause 2.12: Bids should be submitted before 15:00 hours IST on the Bid Due Date.
• Corrigendum 1 (Date, published 01.09.2026) and Corrigendum 4 (Date, published 09.09.2026) have no attached files in this pack, so the final extended deadline is not document-verified here.
• Revised pre-bid responses dated 08.09.2026 were issued after the original 02.09.2026 due date, confirming the schedule was extended, without stating the new due date in the reply document.

Later process milestones

Presentation by technically qualified bidders, financial bid opening and LOA dates are to be informed later; Contract Agreement to be signed within 30 days of LOA.

• Selected Bidder must sign and return duplicate LOA within 7 days of receipt.

Bid validity

Bids remain valid for not less than 120 days from the Bid Due Date, extendable by mutual consent.

Project cost / tender value

Indicative Project Cost is left blank (“-”) in the Tender Data Sheet; no estimated project cost/value is stated.

• This makes eligibility criteria framed as % of “project value specified in the EOI” unworkable until a cost is notified.

EOI / tender document fee

Non-refundable Cost of EOI is Rs. 15,000/- payable in favour of The Commissioner, Khammam Municipal Corporation at Khammam via the online e-procurement portal (also described as Demand Draft).

• Any Bid not accompanied by Bid Security and the Demand Draft towards cost of EOI is to be summarily rejected (subject to later Bid Security waiver — see Bid Security point).

Bid Security / EMD — finally waived at EOI stage

Original EOI required Rs.20,00,000 Bid Security/partial EMD; Corrigendum 3 revised pre-bid reply states “Bid Security is waived off.”

• Original Tender Data Sheet: Bid Security Rs.20,00,000/- refundable as online payment or Bank Guarantee in favour of the Commissioner, Khammam Municipal Corporation, valid for 06 months from bid submission.
• Same sheet: EMD is 2.5% of Project Cost; Rs.20,00,000 partial EMD at bidding, balance collected after Project Cost is arrived at.
• Clause 2.1.5/2.19: Bid Security by DD on nationalized/Scheduled Bank or BG in Appendix-V format; BG validity not less than 120 days from Bid Due Date with 60-day claim period (conflicts with 06-month NIT wording).
• DPIIT Startups and MSEs with valid Udyam Registration were already exempted from EMD under the EOI eligibility table.
• Performance Guarantee after selection remains separately required (see next point).

Performance security / FSD

Successful bidder must submit Performance Guarantee of 2.5% of quoted Price Bid Value (capital cost + O&M cost for 5 years) before agreement; 7.5% FSD is retained from each bill.

• Upon successful completion of 5th year O&M, Performance Guarantee (2.5%) and FSD are to be paid/released.
• Selected Bidder’s Bid Security (if any) may be adjusted against Performance Security.
• Appendix-X Performance Security BG is to remain in force for Contract Period + 3 months from signing (footnote).
• No separate absolute rupee amount for Performance Security is fixed because it is % of quoted Price Bid Value.

Payment terms (capital and O&M)

EOI contains two capital-payment schedules and a later “modified” payment clause; O&M is quarterly/performance-linked with escalation, and contractor may retain by-product sale revenue.

• Original capital schedule: 50% against item-wise running bills; 20% against equipment supply/testing and civil completion; 15% on commissioning; 15% after 2-year Defect Liability Period.
• Modified payment clause E: on successful commissioning, 75% of Capital cost paid, retaining 20% (text says retain 20% while listing 10% after DLP/2nd year O&M and remaining 15% after 5th year O&M — internal arithmetic inconsistency).
• O&M: quarterly = Annual Lump-sum/4; within 30 days of O&M Fee Statement pay 90%, retain 10% against performance criteria; annual escalation 5% from 2nd year of O&M.
• Modified O&M execution payment: based on actual quantity processed (MT/day) with non-compounding 5% escalation on quoted 1st-year O&M cost/MT/day from year 2.
• Evaluation NPV uses 10% discount and 10% year-on-year O&M uplift for L1 only — separate from execution escalation of 5%.
• Prices exclude GST; GST paid extra by Khammam Municipal Corporation.
• By-product (compost, recyclables etc.) revenue may be generated and retained by the Agency/contractor; no extra claim for unsold materials.

Financial bid evaluation basis

LCS on Assessed Bid Price = Capital Cost + NPV of O&M Cost for 5 years (10% discount; O&M escalated at 1.10^n for evaluation).

• Bidder quotes Capital Cost and 1st year O&M Cost separately on e-procurement; platform computes NPV/assessed price.
• Tie-breaker in one place: highest technical marks; elsewhere: highest turnover in any 03 consecutive years in last 10 FYs.

Legal entity and existence

Bidder must be an Indian legal entity (company/LLP/partnership/proprietorship) with SWM experience and existence of not less than three years as on 31 March 2026 (text also says “(2) years” in the same cell).

• Pre-qualification also requires firm/company registration under Companies Act 1956/2013 or proprietary/partnership, in existence at least 3 years at end of FY 2025-26; JV allowed.
• Certificate of Incorporation/Registration required.

Technical experience (similar MSW O&M works)

Successfully completed O&M of MSW processing facility (MRF/RDF/Bioremediation/Compost/CBG/WtE/Landfill/C&D etc.) in last 7 FYs ending 31.03.2026, meeting 1/2/3 similar-contract value thresholds vs project value.

• One similar completed contract ≥80% of project value; or two each ≥50%; or three each ≥40% (text also prints “(3o%)”).
• Indicative Project Cost is blank, so % thresholds lack a stated base value.
• Work Orders and Completion/Performance Certificates required.
• Eligible Technical Capacity projects must be for Local Body/Govt/Semi-Govt/PSU in India on direct contract; no subcontract experience counted.
• Additional specific experience on recycling/re-use of rejected landfill material, or exclusive MoU with such technology provider.

Financial capacity

Minimum average annual turnover Rs.1.00 crore over FY 2023-24, 2024-25 and 2025-26; positive net worth for FY 2024-25; ITRs for last three FYs.

• Turnover: audited BS & P&L, or CA-certified average turnover; provisional CA certificate allowed for FY 2025-26.
• ITRs self-attested plus Provisional Balance Sheet 2025-26 signed by CA.
• Net worth: CA-certified Net Worth Certificate.
• DPIIT-recognized Startups exempted from minimum prior turnover and prior experience under Rule 173(iii) GFR 2017 if registered in Construction/Waste Management relevant sector.

Registrations, blacklisting and other pass/fail conditions

Valid PAN, GST, EPFO and ESIC (or self-declaration with later registration before agreement); no blacklisting/debarment; no material adverse litigation; not NPA; tender fee paid; EMD as specified (later waived).

• Also: not barred by Central/State Government as on Bid date; in last 3 years no failure-to-perform with penalty/award, expulsion or termination for breach by a public entity.
• Litigation History to be submitted (for JV, all members).
• GST certificate, PAN & latest IT returns to be enclosed; certificates attested by bidder.
• Only one Bid; no dual participation individually and in another Consortium/JV.
• Conflict of Interest rules apply; engaging Authority advisers can lead to disqualification and Bid Security forfeiture.

Joint Venture / Consortium rules

JV permitted up to 3 members; bid only in Lead Member name on e-procurement; Lead equity ≥51%, each other member ≥20%; joint and several liability; project-specific MoU mandatory.

• No bidder (individual or JV member) may be member of another bidder.
• Members furnish PoA; MoU must set roles, J&S liability, and intent to form JV company if awarded.
• Blacklisting bar for Bidder/any JV member/Associates covers last 7 years with no bar subsisting on Bid date.
• Change in Ownership: hold ≥51% equity of Contractor for entire Contract Period.
• Corrigendum 3: Consortium/JV may be permitted; final RFP may prescribe further caps/floors (indicative EOI framework text).

Technical score gate for financial opening

Financial bids open only after pre-qualification and a minimum technical score — stated both as 70 marks and as 60 marks in different places; no detailed marking table is printed.

• Letter of Invitation and Clauses 3.3/3.4: minimum 70 marks.
• Eligibility note and JV section: minimum 60 marks in the Marking system.
• Absence of the scoring matrix is a material evaluation gap.

Project overview

Setting up of 198 TPD Municipal Solid Waste Processing, Treatment and Management Facility on EPC & O&M basis at the Dumping yard Site, Khammam Municipal Corporation, for 6 months EPC + 5 years O&M.

• Authority finances capital expenditure and periodical O&M costs under the EOI/Contract Agreement model (EPC contractor, not pure PPP concession by default).
• Selected Bidder may be company/proprietary concern or incorporate before Contract Agreement.
• Compliance with SWM Rules 2016 and environmental/regulatory norms throughout Contract Period.

Processing facilities and technology

Design, build, operate and maintain MSW processing including MRF, compost, RDF or other suitable technology except MSW incineration; closed environment; max 20% rejects dumping.

• Civil works at Existing Dump yard, Khammam, plus support infrastructure, electro-mechanical and instrumentation.
• Electronic weighbridge of 60 Tons capacity with civil & electrical works.
• CCTVs at weigh bridge and processing site, feed integrated to Control center as directed.
• Repair of equipment, structures and other civil works forming Project Facilities.
• Sale/distribution of by-products (compost, recyclables) permitted with revenue retention and monthly reporting to ULB.
• End-product compost to meet FCO standards; emissions to meet SPCB norms; CTE/CTO compliance.
• Corrigendum 3: 20% inert fraction is indicative/design assumption subject to actual characterization; KMC remains technology-neutral at EOI stage.

Machinery and authority-supplied inputs

ULB/KMC provides listed plant machinery and some mobile equipment; contractor installs, commissions, fuels and O&Ms within its scope.

• EOI: SWM plant machinery provided by ULB; contractor installs and utilizes; JCB/Tractors for feed-in and compost treatment provided by Authority, fuel by successful bidder.
• Corrigendum 3 machinery list: Weigh Bridge 2; Sorting Conveyor Belts 17; Trommel 40 mm 1; Trommel 6 mm 1; Bailing Machines 5; Shredders 5; Air Blowers 7; Fork Lifters 2.
• Bidder provides other vehicles/equipment not provided by KMC; use of KMC vehicles only with specific approval.
• Authority also provides: encumbrance-free land; motorable road, water and electricity up to site; clearing legacy waste; permissions/clearances (contractor assists technical docs); minimum assured MSW supply; allied infrastructure (drains, internal/approach roads, green belt, power/water lines).

Contractor O&M obligations

Contractor runs facility for 5-year O&M with manpower, housekeeping, fire safety, PPE, training of KMC manpower, supervisor deployment, and statutory compliance.

• Deploy Supervisor for plant operations for 5 years (text repeats “Supervisor and a supervisor”).
• Train manpower deployed by KMC for plant operation.
• Corrigendum 3 broad scope also lists secondary collection/transfer, GPS transport, wet/dry processing, RDF, inert management, sanitary waste, IEC/BCC, MIS — some items expand beyond the core EOI processing-facility framing and may be finalized in subsequent procurement.
• One misplaced clause states O&M period of one (1) year — conflicts with 5-year project duration (see contradictions).

Location and standards

Project site is the existing dumping yard / SWM site in Khammam Municipal Corporation; works must meet SWM Rules 2016, SPCB CTE/CTO, FCO compost standards and EOI Appendices VII–IX specifications.

• Envelope identification text wrongly says “185 TPD … at Balemla Site for Khammam Municipal Council” — see contradictions.
• Minimum planning capacity 198 TPD unless revised by KMC (Corrigendum 3).

Submission mode and portal

Bids are to be processed on the e-procurement platform; a later EOI modification says physical submission of technical proposals, bid security and bid processing fee can be dispensed and offline references stand modified for online tenders.

• Financial bid rates/O&M to be entered on e-procurement website; Appendix IV not to be uploaded as a document (EOI note) — but Corrigendum 3 says Appendix IV shall be submitted as a sealed document (conflict).
• Corrigendum 3 Response 8: Technical and Financial Proposals should be submitted; Online Tender will be published based on submitted proposals.
• Despite e-procurement language, detailed physical four-envelope sealing instructions remain in the EOI body.
• Fax/telex/telegram/e-mail bids not entertained.
• Language: English.

Envelope / cover structure (as printed)

EOI still describes four inner envelopes (Eligibility, Technical, Financial, Copy of Documents) placed in a sealed outer envelope, each marked with project identification, envelope number, bidder name/address and Bid Due Date.

• Addressed to K.Srinivasa Rao, Deputy Commissioner, Khammam Municipal Corporation, Khammam-507001.
• Prepare one ORIGINAL and two COPY sets; original prevails on discrepancy.
• Each page initialled in blue ink by authorised signatory; bound hard-cover serial-numbered copy in Envelope 4.
• Identification string incorrectly references 185 TPD / Balemla Site / Municipal Council.

Signing and attestation

Authorised signatory must sign the Bid and initial each page in blue ink; supporting certificates to be attested by the bidder; self-declarations on letterhead duly signed and stamped where specified.

• Printed/published documents: only cover initialled.
• Erasing/overwriting/cutting without authentication liable for rejection.
• Draft Contract Agreement copy to be initialled on each page by PoA signatory.

Corrigendum 1 (Date) — no file attachment

Date corrigendum published 01.09.2026 with no attached document in this pack; original EOI bid due date was 02.09.2026, so any extension text is not available to quote from files.

• Action: treat schedule as extended in principle, but obtain the portal date corrigendum text before relying on a final deadline.

Corrigendum 2 — Pre-bid query responses (05.09.2026)

Issued first pre-bid reply set covering scope, land, 20% inerts, DRCC, vehicles, manpower, EMD (then not waived), NPV, BG/insurance, lock-in, measurement and ULB machinery list.

• Sl.15 then: Bid Security/EMD as per EOI; KMC unable to waive except by approved corrigendum.
• Sl.8 then: Pre-Award/Commercial stage per EOI evaluation procedure.
• Also appended broader integrated MSWM EOI framework text (objectives, indicative commercial models, KPIs).

Corrigendum 3 — Revised pre-bid responses (08.09.2026 3:00 PM)

Supersedes Corrigendum 2 replies on key commercial/process points: Bid Security waived; process reframed as proposals now with online tender later; eligibility/formats still largely “as previous bid document”.

• Sl.15 amended from non-waiver to: “Bid Security is waived off.”
• Sl.8 amended to: “Technical and Financial Proposals should be submitted, Online Tender will be published based on submitted proposals”.
• Retains ULB machinery list and integrated MSWM framework; states eligibility criteria as mentioned in previous bid document.
• Formats note now says Appendix IV Financial Bid shall be submitted as a sealed document (conflicts with EOI e-procurement-only instruction).
• Action for bidder: do not price Bid Security cost into EOI submission; still budget Performance Guarantee 2.5% post-award; clarify whether this stage is binding LCS award or shortlisting EOI.

Corrigendum 4 (Date) — no file attachment

Further Date corrigendum published 09.09.2026 with no attached file; final submission/opening calendar after this corrigendum is not printed in available documents.

• Action: verify current portal end date/time before submission; document pack only proves original 02.09.2026 plus later date corrigenda without text.

Values that finally apply after corrigenda (document-supported)

Bid Security waived; Cost of EOI Rs.15,000 remains; capacity 198 TPD; PG 2.5% of quoted price bid value; eligibility largely as EOI; process ambiguous between current proposal submission and a later online tender.

• Bid validity 120 days from Bid Due Date (final due date not printed after date corrigenda).
• ULB-supplied machinery list from pre-bid replies applies.
• 20% rejects/inerts treated as indicative design assumption.
• Original offline envelope mechanics modified toward e-procurement, but not fully redrafted.

Bid Security required vs waived

EOI mandates Rs.20,00,000 Bid Security/EMD; Corrigendum 3 revised pre-bid states Bid Security is waived off (prevailing for EOI-stage security).

• Earlier Corrigendum 2 refused waiver; Corrigendum 3 changes that answer.
• Performance Guarantee 2.5% post-award is separate and not waived in the replies.

Minimum technical score 70 vs 60

Letter of Invitation and evaluation clauses require 70 marks; eligibility notes require 60 marks; no marking matrix is printed to resolve either threshold.

• Bidder cannot verify how marks are awarded.

Bid Security validity 6 months vs 120 days + 60-day claim

Tender Data Sheet/Appendix-V note use 6 months validity; Clauses 2.1.5 and 2.19 use 120 days with 60-day claim period.

• If Bid Security is still demanded on portal despite waiver reply, use the stricter instrument conditions or seek written clarification.

Capital payment schedule — original vs modified clause E

Original schedule pays capital in 50%+20%+15%+15% tranches through 2-year DLP; modified clause pays 75% on commissioning and holds balance through year 5, with internal 20% vs 10%+15% mismatch.

• Modified clause text: retain 20% paid as 10% after DLP/2nd year O&M and remaining 15% after 5th year O&M (10+15=25, not 20).

O&M escalation 5% execution vs 10% NPV evaluation uplift

Execution O&M escalation is 5% per year (non-compounding in modified clause); financial evaluation NPV uses 1.10^n uplift on quoted 1st-year O&M with 10% discount rate.

• Bidders must not confuse evaluation formula with payable O&M.

Capacity/site naming 198 TPD Dumping yard vs 185 TPD Balemla

Title/data sheet/scope use 198 TPD at Khammam dumping yard; envelope marking and some BG proforma text still say 185 TPD at Balemla Site for Khammam Municipal Council.

• 198 TPD / Khammam dumping yard / Municipal Corporation is the consistent project description in operative scope clauses.

Contract/O&M period 5 years vs one-year clause

Project duration is 5 years O&M almost everywhere, but a clause states the Trommel-equipped facility shall be operated and maintained for one (1) year from Effective Date.

Existence requirement three (2) years and 40% vs (3o%)

Eligibility Sr.No 1 writes “three (2) years”; Sr.No 2 third limb writes “forty percent (3o%)” — internal drafting errors.

• Nearby pre-qualification text uses full “3 (three) years”, supporting a 3-year reading unless clarified.

Appendix IV only on portal vs sealed financial document

EOI instructs Appendix IV financial format only on e-procurement and not uploaded; Corrigendum 3 says Appendix IV shall be submitted as a sealed document.

Full competitive LCS award EOI vs shortlisting / later online tender

EOI is written as LCS award with LOA and contract signing; Corrigendum 3 says online tender will be published based on submitted proposals and frames EOI as shortlisting/market sounding with no right to award.

• Material bid/no-bid and pricing-process risk until KMC confirms which stage is binding.

Tie-break rules differ

One clause selects higher technical marks on identical assessed Bid Price; another selects highest turnover in any three consecutive years of last ten FYs.

Offline multi-copy sealed bids vs e-procurement-only modification

Detailed physical ORIGINAL+2 copies and four-envelope filing remain; modification F says physical submission can be dispensed and offline references modified for e-procurement.

Is this stage a binding priced tender or only EOI shortlisting?

Corrigendum 3 says an online tender will be published based on proposals and EOI creates no right to award, while the base EOI runs full LCS/LOA mechanics — confirm before pricing capital+O&M.

• Ask whether financial quotes now are evaluated for award or only indicative for market sounding.

Confirm Bid Security waiver on the live e-procurement checklist

Revised reply waives Bid Security, but portal metadata/original EOI still show EMD/Bid Security amounts — get written portal/compliance confirmation to avoid non-responsive upload.

• Also confirm whether Cost of EOI Rs.15,000 remains mandatory (no waiver stated).

State the missing Indicative Project Cost / estimated value

Eligibility similar-work thresholds are % of “project value specified in the EOI”, but Indicative Project Cost is blank — request notified project cost or absolute experience values.

Which capital and O&M payment schedule finally governs?

Request a single consolidated payment clause replacing original 50/20/15/15 schedule and modified 75%+retention wording (including the 20% vs 10%+15% error).

• Also confirm whether O&M is lump-sum quarterly or actual MT/day with 5% escalation.

Publish technical marking matrix and resolve 60 vs 70 pass mark

No scoring table is printed yet financial opening depends on minimum marks — request full marking system and controlling threshold.

Scope boundary: processing-only EPC vs integrated collection/transport/IEC

Base EOI focuses on MSWPF at dump yard with ULB machinery; Corrigendum 3 broad scope table adds secondary collection, GPS transport, sanitary waste, IEC — confirm inclusions/exclusions and measurement.

• Also confirm guaranteed minimum waste quantity and treatment of quantities above 198 TPD.

Provide draft contract with LD/penalty schedule and final commercial model

EOI itself notes draft concession agreement with penalty clauses must still be incorporated; Corrigendum 3 says final penalties/security/termination will be in subsequent procurement document — material unpriced risk.

Final bid due date/time after Date corrigenda 1 and 4

Date corrigenda have no files in the pack; only original 02.09.2026 15:00 IST is printed — request the controlling portal timetable.

Process ambiguity — EOI shortlisting vs immediate LCS award

Bidders may be asked for priced financials now while Corrigendum 3 indicates a later online tender and no right to award, creating free optionality for the Authority and pricing risk for bidders.

Heavy post-award cash lock-up (PG 2.5% + FSD 7.5% + capital retentions + 10% O&M holdback)

Even with Bid Security waived, contractor funds Performance Guarantee on full quoted capital+5yr O&M, bill-wise FSD, long capital retentions through year 5, and 10% O&M performance retention.

• Interest on delayed Authority payments is only at SBI medium-term PLR — limited compensation for slow certification.

Missing LD/penalty regime and incomplete draft contract

No quantified liquidated damages schedule is printed; EOI admits draft agreement with penalty clauses still needs incorporation; final penalties deferred to later procurement text.

• Bid Security forfeiture events remain extensive if security is reimposed.

Dependence on Authority-supplied waste, land, utilities and machinery

Throughput revenue/O&M metrics depend on KMC supplying minimum assured MSW, site, utilities, clearances and listed machinery; contractor still bears install/O&M/fuel and cannot assume DRCC closure or extra quantity treatment without directions.

• 20% reject cap and WtE-cluster disposal location directed by KMC may constrain process design.
• By-product market risk sits with contractor (no compensation for unsold recyclables).

Tight EPC timeline and evaluation opacity

6-month design-build-commission window from agreement signing is aggressive for a 198 TPD closed MSWPF; technical scoring matrix absent and 60/70 mark conflict increases award-challenge risk.

• LOA duplicate to be returned in 7 days; agreement within 30 days of LOA — compressed post-award mobilisation.

One-sided process rights and broad disclaimers

Authority may cancel/modify process without liability; bidder bears all bid costs; broad release of Authority from claims; conflict-of-interest and adviser rules can forfeit security/disqualify.

Unworkable experience % without project cost; typographical eligibility traps

Blank project cost plus “three (2) years” and “forty percent (3o%)” drafting errors create rejection/dispute risk if evaluators apply inconsistent readings.

Inviting authority

Commissioner, Khammam Municipal Corporation (Authority), Municipal Administration & Urban Development Department, Government of Telangana.

• Project implementation under Khammam Municipal Corporation.

Physical bid / communication address

O/o. Commissioner, Khammam Municipal Corporation, Telangana; detailed envelope address to Deputy Commissioner K.Srinivasa Rao, Khammam Municipal Corporation, Khammam-507001.

• Pre-bid venue: 1st Floor Conference Hall, O/o. Khammam Municipal Corporation (also listed as Commissioner, Khammam Municipal Corporation at 11:00 AM).

Email for clarifications

Clarification queries to be notified in writing and by e-mail to [email protected].

• Authority to respond by e-mail and circulate queries/responses to all bidders without identifying source.
• No phone number is printed in the EOI body.