Indo-China tension: Gwalior Municipal Corporation scrutinises Rs 245 crore contract given to Chinese company

BHOPAL: CM Shivraj Singh Chouhan’s announcement to boycott Chinese products has started showing results. The state government officials have started making lists of Chinese companies working in Madhya Pradesh. The process of clipping Chinese companies to size is expected to start from Gwalior.

The state government could avenge killings of 20 Indian soldiers at Galwan by cancelling contract of Chinese firm Ecogreen at Gwalior. This company had bagged Rs 245 crore contract for Solid Waste Management for Gwalior Municipal Corporation.

Ecogreen Energy is a subsidiary of China Jinjian Environment Holding Company Limited (CJE) that claims to be one of the leading waste to energy companies also listed on Singapore Stock Exchange. It has over 41 waste to energy plants in China and is doing business in several countries.

Ecogreen Company had signed a contract for solid waste management for 16 municipalities in Gwalior division including Gwalior Municipal Corporation (GMC). The contract was to collect garbage from door-to-door and convert it into energy through its energy plants. GMC was supposed to pay Rs 1701 per ton for the garbage. This payment plan had a rider that company will convert the garbage into organic compost and produce electricity.

Payment condition also said that if company fails to convert garbage into compost or produce electricity, then only 40% of the agreed payment would be done. According to officials of urban administration department, the company bought 125 vehicles for waste collection after it signed contract on May 19, 2017. However, the vehicles of the company could not cater to needs of all the 66 municipal wards.

The Ecogreen Company also failed to establish power plant thereby violating basic contract conditions. The company is being penalised to the tune of Rs 10-12 lakh per month for violating contract conditions.

Officials of UAD say that the company disposes of about 9,000 tons of garbage per month and gets paid Rs 50-60 lakh per month. This payment could increase to about Rs 1.25 crore per month if it sets up power plant, said the official.

Officials of the UAD are now contemplating for solid waste management on their own. According to initial calculations, they require about 225 vehicles for waste collection. At present, Ecogreen has 125 and the GMC has 72 vehicles that could manage waste collection but officials are skeptical about converting it into compost.

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