SWM Cess on Waste Generators | 20 Jun 2024

Source: TH

Why in News?

Recently, Bengaluru has proposed to increase the Solid Waste Management (SWM) Cess to Rs. 100 per month for each household in order to cope up with the high financial strain in the SWM process.

• Currently, ULBs typically charge about Rs. 30-50 per month for SWM services, which is often collected along with property tax.

What is SWM Cess?

• About:
  • Solid Waste Management (SWM) cess is a user fee or charge levied by Urban Local Bodies (ULBs) in India.
    • A cess is a form of tax or levy imposed by governments to fund specific services or purposes, such as waste management or infrastructure development.
• Legal Provisions:
  • As per the Solid Waste Management Rules, 2016, ULBs are required to collect user fees or cess for SWM services. The suggested rise in fees is a response to the growing expenses and difficulties encountered by ULBs in efficiently handling solid waste.

What are Solid Waste Management Rules 2016?

• These rules replaced the Municipal Solid Wastes (Management and Handling) Rules, 2000.
• It focused on the segregation of waste at source, the responsibility of the manufacturer to dispose of sanitary and packaging wastes, and user fees for collection, disposal and processing from the bulk generator.
• Key Features:
  • Waste Segregation & Disposal: Residents must separate waste into wet (biodegradable), dry (recyclable), and hazardous categories. Segregated waste goes to authorised collectors or local bodies.
  • Payments: Residents pay user fees for collection and face fines for littering or not segregating waste.
  • Waste Processing: The SWM Rules encourage composting or bio-methanation of biodegradable waste whenever possible. Landfills, waste-to-energy plants, and special handling for hilly areas are also covered by the rules.
  • Local Authority Duties: Municipalities collect segregated waste, ensure proper processing/disposal, and levy user fees to cover costs.
  • Extended Producer Responsibility: Manufacturers of disposables (packaging) share responsibility for collection and financially support waste management systems.

What is Rationale Behind Increasing SWM Cess Collection?

• High Costs of SWM Services: The SWM process is highly complex and resource-intensive, consuming up to 50% of the annual budgets of ULBs.
  • The expenses include capital investments, as well as operational costs, including salaries, waste collection, and the functioning of waste management plants.
• Revenue Challenges: Despite the high expenditure on SWM, the revenue generated from these services is minimal.
  • For example, Bengaluru spends approximately Rs 1,643 crore in SWM services, while the revenue generated from SWM services, excluding grants received, is almost negligible at Rs. 20 lakh per year.
• Limited Recyclability: A mere 1-2% of dry waste is recyclable, while the bulk of the waste is non-recyclable and non-biodegradable, leading to negligible revenue from recycling efforts, further straining the financial resources of ULBs.
• Operational Challenges: Proper segregation of waste at the source is often lacking, complicating the processing of waste.
  • Also, there is a limited market for the finished products derived from waste processing, making it financially unviable.
• Disposal Costs: The disposal of non-compostable and non-recyclable dry waste is a significant expense, particularly due to the transportation costs, as the facilities for proper waste disposal are often located far from urban centers.

What Measures can be Taken to Reduce Operational Expenditure on SWM Services?

• Waste Segregation at Source: Improving waste segregation at the household level can increase the yield from composting operations and enhance the recycling of dry waste, thereby reducing operational costs.
• Reducing Single-use Plastic: The increasing prevalence of non-recyclable single-use plastics adds to the transportation and disposal costs for ULBs. Reducing the use of such plastics can help lower operating expenses.
• Decentralised Composting: Setting up Micro Composting Centers (MCCs) at the ward level, as seen in Tamil Nadu and Kerala, can help process wet waste locally and reduce transportation costs.
• Self-Waste Processing by Bulk Waste Generators: Incentivising large institutions and establishments to set up in-house waste processing facilities can help reduce the burden on ULBs and promote cleaner premises.
• Information, Education, and Awareness (IEC): It will help to prevent open littering. Effective IEC campaigns to discourage improper waste disposal can reduce the labour required for sweeping roads and clearing drains, allowing the redeployment of resources to waste processing and value recovery.