SMC's waste-to-energy project may be delayed

The Rs 200 crore waste-to-energy project of the Surat Municipal Corporation (SMC) may get delayed due to the failure of the project contractor to fulfill various conditions.

SMC had awarded the project to the Mumbai-based Damodar Synthetics on August 11 last year.

Under the contract, Damodar Synthetics was supposed to deposit Rs 1 crore as bank guarantee and to secure a no-objection certificate (NOC) from the Pollution Control Board. The company was also supposed to get an approval from the ministry of non-conventional energy sources for the project.

However, after 11 months the firm is yet to fulfill any of the conditions.

SMC municipal commissioner G R Aloria said: "Damodar Synthetics has failed to get the clearance from the ministry of non-conventional energy sources as well as the NOC from the Gujarat Pollution Control Board. I have recommended the standing committee to cancel the contract given to the company."

He added that the company had cited the change of government at the Centre for the delay in obtaining the clearance.

Aloria, however, said that though the project will take more time to kick off, it will not be shelved off altogether.

SMC will provide land, water and waste for the project, while the Central government will meet the fund requirements. The corporation will also get electricity at cheaper rates from the project.

Municipal commissioner G R Aloria had a meeting with representatives of Damodar Synthetics, who sought more time to fulfill the conditions of the contract. They also sought certain changes in the various conditions in the letter of Intent.

However, as the company representatives were unable to give any satisfying reasons for seeking the extension, Aloria has initiated measures to revoke the contract of Damodar Synthetics.

Aloria plans to table a proposal seeking the cancellation of the contract before the standing committee at a meeting to be held on Thursday.

He will also propose to bar Damodar Synthetics from getting any SMC mandate for the next three years.