The Hindu 18.11.2014
Rs. 14 crore due from civic body: waste management company
Corporation had earlier served a notice on bank guarantee
Coimbatore Integrated Waste Management Company Private
Limited, in a release here, has said that the Coimbatore Corporation
owed it Rs. 14 crore. Not making the monthly payment was a violation of
contractual obligations.
As a consequence it had not
renewed the bank guarantee of Rs. 4.95 crore. It had submitted the bank
guarantee at the time of signing the contract, and had renewed it
regularly, the company said.
Earlier, the corporation had served a notice on the company for not renewing the bank guarantee.
Bank guarantee
On receipt of the notice, the company had asked the bank to renew the bank guarantee.
The
corporation, however, had not released the original bank guarantee, or
provided a discharge letter, the release said. In response to the notice
for not processing the waste, the company said that according to the
contract agreement, the corporation was supposed to supply 90 per cent
segregated waste, which was not being done.
The corporation was supposed to receive only 400 tonnes of waste a day but it was receiving twice the quantity.
Listing
out charges against the civic body, the company said that the
corporation had not cleared its dues for the last 24 months, its
efficiency was reduced as the corporation supplied garbage that was
mixed with silt, debris, bio waste, and industrial waste.
Transit station
As
for the fourth transit station, the corporation was yet to take up the
construction though the project had been around for five years now. The
delay in transportation of waste had to do with it taking mixed waste.
The
company clarified that the waste lying dumped at the yard had been
there prior to 2009 as well, when it took over the operations.
It was trying to remove the waste, the company added.