Contract with Zonta: Kozhikode Corporation waiting for government decision

Kozhikode Corp. awaits State govt. decision on ₹250-cr. contract with Zonta Infratech for waste-to-energy plant. Fire at Brahmapuram plant has put company in bad light. Corporation has begun talks with GAIL for natural gas plant, but project can't take off until contract is cancelled.

The Kozhikode Corporation is awaiting a decision by the State government regarding the ₹250-crore contract with Zonta Infratech for the proposed waste-to-energy plant at Njeliyanparamba.

The delay caused by the company in fulfilling its ₹7.77-crore contract with the Corporation for biomining and capping activities at Njeliyanparamba to prepare ground for the waste-to-energy plant has created a lot of ill-will against the company. Though the biomining and capping contract has ended, there is still some work pending.

The Corporation had to bear the extra expenditure to cover the capped area with polythene sheets during rain to prevent leakage. The civic body had already paid ₹3.7 crore to the company for the project. However, the company has to pay a fine of ₹38.85 lakh for the delay and ₹21.5 lakh for the covering work to the Corporation. The Corporation has not yet decided on whether and how to pay the remaining amount for the project.

The massive fire at the Brahmapuram waste management plant in Kochi has further put Zonta Infratech in bad light. There have been active discussions and demands from various quarters since then to cancel the contract for the waste-to-energy plant. However, considering the number of stakeholders in the contract, the ball is now in the court of the State government which has not yet taken an active interest in the matter.

“The Corporation is seeking legal advice on the matter. Besides the Corporation, the nearby municipalities and grama panchayats and the State government are parties to the contract. Also, it is a huge company. There is a lot at stake if we cancel the contract,” said K.U. Bini, Corporation Secretary.

The Corporation had leased out around 9 acres at Njeliyanparamba to the Kerala State Industrial Development Corporation (KSIDC) for the proposed waste-to-energy project. Though the project was entrusted to Zonta Infratech, the land was yet to be handed over by the KSIDC, which would make matters easier if the contract is being cancelled.

Meanwhile, the Corporation has begun talks with Gas Authority of India Limited (GAIL) for setting up a natural gas plant at the site that was identified for the waste-to-energy plant. The plan is for a plant with 100-tonne capacity, which GAIL is ready to construct at its own expense if the Corporation is willing to provide land, water, and electricity. However, the project can not take off until and unless the contract with Zonta Infratech is cancelled.