KOCHI: Kochi Corporation has decided to not oppose the state government’s move to sign a lease agreement with GJ Eco Power Private Limited on the proposed Brahmapuram waste-to-energy plant. The Rs 295-crore project, announced in 2016, is expected to be launched in February 2021. Retracting from their earlier stance, the corporation officials have clarified that the decision does not require the approval of the Kochi Corporation.
“Since the Local Self Government Department (LSGD) directly deals with the company, there is nothing much to do in the matter. The state government’s move came after realising the council’s stance against leasing out the property. Initially, we were considering the legal aspects of mortgaging the 20 acres of land. But we won’t oppose the state government’s decision on the matter,” said Mayor Soumini Jain.
Earlier, the firm had decided to raise funds for constructing the plant by mortgaging the corporation’s land at Brahmapuram. Both parties had signed a concession agreement permitting the firm to build the plant there in 2016. As per the pact, the contracting firm was to construct the plant under a public-private partnership (PPP) model and hand it over to the civic body after the period.
“Due to the delay and resulting cost escalation, the firm has requested us to change the concession agreement to a lease agreement. The council has unanimously decided that the setting up of the plant should not result in financial commitments for the corporation,” she added. However, the LSGD which envisaged the plan is yet to finalise its terms. The officials are of the view that the leasing proposal will help the firm to complete the project with ease.
“Though the department has mooted the proposal to lease out the entire plant area to the private player, no concrete decision has been taken yet. Mortgaging the property will help the company to get loans,” said an LSGD official.
Ngt rules followed
Corporation officials have also clarified that they have been following National Green Tribunal (NGT) directions at the Brahmapuram plant. “The corporation is looking to manage the legacy waste at the plant through short-, medium-and long-term plans,” said Mayor.