“The agreement signed during the previous Congress regime was in favour of private firm”

Recently, Chief Minister N. Rangasamy, on more than one occasion, expressed his displeasure over the substance of the agreement reached between local bodies and the selected private player to manage solid waste in Puducherry.

According to the Chief Minister, the Memorandum of Understanding signed by the parties concerned during the previous Congress government was “illogical and in favour” of the private firm.

Though the landfill is not yet ready, the firm launched its operations a few months after the MoU was signed on October 18, 2010. A perusal of the 75-page MoU accessed by The Hindu reveals that the concern expressed by the Chief Minister, particularly on the financial aspect, was true.

The government, however, has the right to terminate the agreement in the event of default by the company but may still have to provide compensation and the firm cannot use the site for any other commercial purpose.

As per the agreement, the concession is granted for a term of 19 years.