Chandigarh: Garbage plant in limbo as firm refuses to take over

Municipal Corporation Commissioner Baldeo Purushartha said expression of interest had been called from a company that could take over the operation of the garbage plant exactly the same way Jaypee was doing it.

After deciding that the MC and Jaypee would mutually terminate the agreement, the latter had asked for payment of salvage value. Councillors had raised the issue that not the MC but the new company taking over the operations should pay the salvage value of nearly Rs 30 crore. Sources said the UP-based company did not find the deal financially viable when the issue of paying salvage value was raised.

“We have to get another company by March because it would be difficult. We need an alternative immediately. The UP-based company backed out,” said a senior official. 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 before suspending the operation on July 11 last year.

After the MC moved the National Green Tribunal, the court directed them to resume operations immediately. Later, because the company pleaded that they were running into losses, the NGT directed the MC to solve the issue amicably. It was then decided to mutually terminate the agreement and the new company to take over.