Institutional development and capacity-building requirements for strengthening solid waste management systems are mainly dependent on financial assistance. At this stage the Component 2 provides grants to local bodies to improve their solid waste management systems with a focus on the collection and transportation of solid waste.
As a prerequisite, urban local bodies need to sign a participation agreement. With this participation agreement, grants will be released to the local bodies over and above their existing plan fund allocations. For grant allocation, a two-tranche system, comprising a Basic Grants and an Incentive Grants will be executed. Grants will be allocated to local bodies on a per-capita basis, based on investment needs. For the project duration, the per capita amount may differ for the 6 municipal corporations and 87 municipalities depending on the activities they need to undertake.
Allocation of Grants
- Provides grants to ULBs for strengthening SWM activities
- Two types of grants-
(a) Basic Grant (upto 40% of Grant Allocation Ceiling)
(b) Incentive Grant (upto 60% of Grant Allocation Ceiling) - Basic grants will be available once ULBs sign a participation agreement
- Incentive grants will be sanctioned only on meeting certain project criteria
Eligibility Criteria of Grant Allocations
| Grant allocation ceiling | Eligibility Criteria |
| Basic Grants (40%) | Available once ULBs sign a Participation Agreement |
| Incentive Grants (40%)
|
ULBs must have fulfilled all following three conditions:
|
| Incentive Grants (20%)
|
5% grants on fulfilling each of the following four conditions:
|
The component provides grants to the participating ULBs for improving their local level SWM systems and capacities, mainly:
- Primary collection and transportation systems for solid waste
- Source segregation and treatment for Biodegradable waste
- Rehabilitation of the existing material collection facilities (MCFs) or resource recovery facilities (RRFs) and development of new integrated MRFs
- Development of BDW management facilities
- Closure or remediation of existing dumpsites and development of disposal cells as interim disposal facility
- Public space cleaning, sanitization and waste removal activities
- Protective gears and other equipments for sanitation and waste management workers
- Operations and maintenance payments for contracts and tipping fee for regional disposal
- Implementation of environment and social risk mitigation actions
