Saligao plant stinks of corruption? Even before the garbage plant at
Saligao comes up, there is a whiff or a scandal in the air. SURAJ NANDREKAR
sniffs around and finds that the plant will cost Rs 400 crore and not Rs
146 crore that the government will have you believe.

16 Aug, 2015, 07:06AM IST
[image: Saligao plant stinks of corruption?]
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It took a delegation of 30 members visiting several European countries to
finalise the technique and machinery for the garbage treatment of a small
State like Goa with a population of just 15 lakh. Not only were crores of
rupees spent on the Europe junket, the machinery which has been finalised
will cost the State hundreds of crores of rupees more than what has been
proclaimed by the agencies involved and the politicians.
That’s the money part. The project itself has run into a rough weather with
several illegalities pointed out by activists and NGOs. Goa State
Infrastructure Development Corporation (GSIDC), which has undertaken the
project, has maintained that the plant will cost Rs 146 cr but the rest has
not been explained to the people.
Herald investigations have revealed that the plant will cost the State
nearly Rs 400 cr after 10 years, when the government finished paying SWC
that has been given the contract on a Design Build Finance and Operate
(DBFO) basis and the entire Rs 146 cr has been invested by the promoter.
However, this Rs 146 cr will have to be paid by the State as Gross Annual
Operations Support Grant in equal installments of Rs 29.90 cr annually for
the next 10 years as the amount has to be paid back to the promoters with
interest, which comes out to Rs 299 cr in 10 years, more than double the
amount invested.
Secondly, the State will pay the promoters Rs 1562 per tonne of waste
handled at the site, which according to official calculations comes to Rs 9
crore annually, which would total to Rs 90 cr at the end of 10 years. So at
the end of 10 years, the State would actually have paid the promoters an
amount of Rs 389 cr, so why is the government calling it a Rs 146 cr plant
and not Rs 389 cr plant?
Also, GSIDC has not taken any corporate guarantee from SWC for ensuring
successful application of the technology, viability and successful run,
which are mandatory for all projects. Besides this, Goa Foundation has
moved the National Green Tribunal (NGT) on environmental non-compliances
before commencing the projects.
“These are very high costs as there are similar sized projects which cost
must less, and implement effective waste management and achieve compliance.
These projects have composting process with landfill of rejects. They are
not based on waste to energy as it is sought to be done in Goa,” says
Claude Alvares of Goa Foundation.
He says GSIDC by paying Rs 1562 per tonne of garbage solely for processing
and disposal plus an annual grant for reimbursement of capital cost is
obviously doing the agency a favour at public expense.
Investigations have also revealed that the statutory norms of having an
Environment Impact Assessment (EIA) and public hearing for Environment
Clearance were also not followed. NEERI was simply recruited to do a
post-facto EIA.
Alvares says that the work order has been given to SWC Ventures, which has
no previous experience or performance history. “There is no mention of the
missing technical qualification being met through some other agency, by a
joint venture, and hence the basis or criteria chosen for GSIDC’s selection
of this party are unknown,” he said.
Alvares also says it is a myth that the plant will produce 1 MW of power as
there is no clarity on the amount power going to be generated. “The Goa
State Pollution Control Board has informed us that it has cleared a 0.5 MW
plant that is half the capacity given in work order. So where is the
question of 1 MW power generation?” he asks.
Further, says he, to produce 1 MW of power the Union Ministry of MNRE has
stated that a minimum of 12000m3 of gas is required for 1 MW of power
generation. “At present we can hardly get 100 tonnes per day of mixed waste
and through which we can produce only 0.76 MW of power. So do not be
surprised if waste will be imported from outside Goa to keep the plant
running,” he cautions.
Alvares questioned as to why the government did not appoint a consultant to
analyse the proposals and give recommendations, which is a standard
procedure in matters of this kind. Alvares has blamed the former chief
minister for all the illegalities. “From file notings, all the principal
decisions to waive procedures were taken by the then chief minister,”
he said.

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