Differences between partners stall Pandesara effluent treatment project

Four years since the signing of a memorandum of association (MoU) between the Surat Municipal Corporation (SMC) and the Pandesara Green Environment and Water Welfare Co-operative Society Ltd, no progress has been made in the proposed common effluent treatment plant in Pandesara.

The Rs 20-crore subsidy announced by the Central government may be lapsed due to the delay in the project, which is expected to cost Rs 60-70 crore.

As per the original MoU, SMC and the Pandesara association were to share the total expenditure equally between them. Certain changes were affected in the original MoU, and a fresh MoU was signed a year and a half back. As per the new one, Pandesara association would bear 65 per cent of the total project cost, while SMC would bear the remaining 35 per cent.

The Central government agreed to provide a subsidy of Rs 20 crore for the project under it's Textile Centre Infrastructural Development Scheme (TCIDS). The state government also agreed in principle to give 25 per cent grant to the project.

However, in view of the recent Pandesara water pilfering scam, where industries were accused of pilfering water from SMC's supply network, the Pandesara association is washing its hand of the project.

"SMC authorities have revealed their autocratic style of functioning in the entire water pilfering episode. If SMC is involved with the CETP project, the possibility of them coming up with some other ploy to harass us unnecessarily cannot be ruled out," a member of the Pandesara association told Business Standard on condition of anonymity.

"SMC authorities have delayed the CETP project under one or the other pretext. The corporation has not taken any concrete decision with regards to the project," he said.

Another member of the Pandesara association, said, "We are confident that the CETP project could be completed at a faster pace without the involvement of SMC. We require approximately 1 lakh sq yard for the project, which would also be enough for future expansion. We have sought land from SMC at token rates, but the Corporation is yet to give a reply."

"According to SMC, the entire CETP project would cost around Rs 60-70 crore. But we could complete it at a cheaper rate, if we undertake the project on our own," the member added.

There is also a technical reason why the Pandesara association wants to keep SMC out of the project. "We have come to know that if SMC is involved with the CETP project, the Central government might not provide the us subsidy, as only an industrial body is eligible for getting the subsidy under TCIDS," the member said.

"The subsidy was valid till March 31, 2004, but due to the delay in the project, the Centre extended it by seven months.

"The subsidy would lapse on October 31. We can re-apply for the subsidy, but this would again take some time, which would lead to even more delay in the project. So it is in the interest of everyone that quick decisions are taken and the project is started at the earliest," he added.