Special Correspondent

HYDERABAD: Greater Hyderabad Municipal Corporation's (GHMC) deal with Ramky is leading to further complications with regard to tipping fee and garbage supply.

Even while moves are afoot to reduce the fee by giving only the tertiary part of garbage processing at the dump yard to it, other firms using garbage for generating power are demanding a similar fee!

Selco, the first garbage to power generating plant set up in Shadnagar six years ago, too is wondering why it cannot be given a similar ‘incentive' like Ramky which has been assured a tipping fee of Rs. 1,431 per tonne of garbage lifted. Selco plant has been shut down for the last one year due to technical reasons and also local opposition to the stink.

It is also in a legal battle with the Municipal Corporation for the latter demanding payment of royalty as well rent for the 30 acre site given running into more than Rs. 20 lakh. Selco originally contracted to take 700 metric tonnes of garbage a day never took more than 300 metric tonnes and over the years was considerably reducing the intake, said senior officials.

The firm has been using part rice husk and even wood along with some part of garbage when it was running. It had also plans to for a second phase of the project to its existing 6.6 MW plant since it had 20-year tie-up with APTransco before the shut down.


Incidentally, the other garbage to power plant under construction by RDF Power Projects at Bibinagar and likely to go on stream by November has been given a tipping fee waiver together with a 10-year tax holiday.

The Rs. 82.5-crore captive power 11 MW plant in which GHMC has promised to invest Rs. 6 crore for a 26 per cent stake is using machinery exported from China and is to utilise 500-700 metric tonnes of garbage a day.

Meanwhile, the government has also asked GHMC to consider the request of a third power plant - Sri Venkateshwara Hydro Projects, to supply 700 metric tonnes (MTs) of garbage daily for power generation.

Garbage supply was refused as the firm had failed to complete a financial closure in the stipulated time and was also yet to firm up an agreement too. To its luck, the Ramky deal assuring 2,400 metric tonnes garbage supply was signed with rest of the 1,400 metric tonnes generated to be shared by Selco and RDF.