Garbage plant at Dadumajra: After termination of contract, MC faced with another crisis

Neither MC nor new company is ready to pay Rs 30 crore as salvage value to Jaypee group

Written by Hina Rohtaki | Chandigarh | Published: September 3, 2016 11:00:07 am
CHANDIGARH, CHANDIGARH Municipal Corporation, garbage plant at Dadumajra, Dadumajra, latest india news, latest chandigarh news In 2005, the civic body had signed a contract with Jaypee group for 30 years. Express archives

TWO DAYS after the Municipal Corporation heaved a sigh of relief after the deadlock with Jaypee group, the company running the garbage plant, was broken, there is more trouble in store. This time, about payment of money. As the salvage value was to be paid to the Jaypee group with whom the civic body had mutually decided to terminate the contract, the Jaypee group had demanded Rs 30 crore for their plant and machinery. Neither the MC nor the new company is ready to pay such a hefty amount.

A meeting of the committee constituted for this purpose was held on Friday. The meeting lasted four hours but no conclusion was reached. Sources said that the MC had taken a stand that not more than Rs 10 crore could be given to them.

Congress councillor Subhash Chawla, a member of the committee, said the civic body should not pay a single penny to the company as they were leaving them in the lurch. “Why should the civic body pay such a hefty amount? I believe the settlement of this payment should be between the new and the existing company,” said Chawla. Talks were on with a UP-based company to take over the operations of the garbage processing plant at Dadumajra.

Sources said that even the new company is hesitant to pay such a hefty amount to Jaypee as they will have to spend nearly Rs 100 crore on taking over completely. The new company had proposed that they would be able to give only a reasonable amount and not such a hefty amount.

With the crisis deepening, another meeting will be held soon now. Mayor Arun Sood, however, said that everything was at a preliminary stage. The general house of Municipal Corporation on Wednesday had approved the termination of the agreement with the Jaypee group. The agreement is being terminated with mutual consent. The operation of the solid waste plant will be handed over to a successor entity now.

In 2005, the civic body had signed a contract with the Jaypee group for 30 years. However, the tussle over non-payment of tipping fee forced them to cancel the contract. The Jaypee group kept sending letters to the civic body that it was running into losses and demanded the tipping fee. The NGT had directed the Municipal Corporation to solve the issue amicably once and for all and place it before the court on September 13 .

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