Mir Projects and Consultants has decided to withdraw from its bid for developing the proposed project of the Kannur municipality to generate electricity from waste, amid controversies triggered by disputes between the Congress and the Indian Union Muslim League in the United Democratic Front (UDF)-ruled municipal council.

Announcing this at a press meet here on Monday, Mir Group Managing Director K. Arun Kumar said that the group was withdrawing from its bid for the project, estimated to cost Rs.150 crore. The project envisaged generation of electricity from waste at the municipality's landfill at Chelora. The Kannur municipality had floated a tender in July last year. The Mir Projects and Consultants had submitted its project for developing a plant for generating electricity from waste in collaboration with a German company.

Mr. Kumar said that the company's proposal did not impose any financial burden on municipality. The company would operate the plant for 25 years and hand it over to the municipality after that without any condition. The company was to start construction of the plant in one month after it was approved and to complete it in a year after the works began, he said.

Mir Group was now withdrawing its proposal in the wake of differences within the ruling alliance in the municipal council over the project. The decision was taken in view of group's concern that the controversy might even affect its credibility. Mr. Kumar said that the company had earlier expressed its willingness to arrange a visit by municipal authorities to a similar plant developed in Munich, Germany. The tour had been cancelled because of the announcement of local body election. The project was embroiled in controversy after the election of the new council, he said. He said that the decision to withdraw from the project consultancy and development would be formally informed to the municipal authorities.