NMC may terminate contract of Kanak Resources Mgmt Limited

Source: The Hitavada      Date: 14 May 2017 09:46:03


Special Correspondent,

Nagpur Municipal Corporation (NMC) is likely to terminate the contract of Kanak Resources Management Limited (KRML), firm engaged for house-to-house collection of garbage and to dump it at Bhandewadi Dumping Yard. The proposal will be discussed in the Standing Committee meeting slated on May 15 at 12 noon.


According to sources, a three-member committee headed by a Deputy Commissioner has found gross violation and misappropriation in payment made to the contractor for lifting of garbage. The committee has recommended stern action against the officers involved in signing the bills of KRML. Health Department is seeking time to complete the process of inviting tender to appoint a new contractor for collection of garbage from households and city areas.


It may be mentioned that KRML has miserably failed in managing the collection of garbage and disposing it of to the dumping yard. Though NMC has declared Nagpur as ‘bin-free city’, garbage is visible in various open spaces of the city.


KRML has been coming under fire from the citizens as well as corporators over its gross mismanagement of garbage collection and disposal. Vikas Thakre, former Leader of Opposition in NMC, had alleged massive corruption in NMC’s agreement with KRML and demanded in the House during previous regime to terminate the contract.


Sources told ‘The Hitavada’ that NMC had signed an agreement with KRML in December 24, 2007 to lift garbage at Rs 449/- per tonne. The civic body also agreed to review wholesale price index (WPI) every quarter to incorporate the changes in commodity rates in the rates payable to the contractor firm.


Recently, KRML had issued a letter to NMC seeking withdrawal from agreement for collection of garbage in view of hike in salaries of contractual workers. Congress corporator Praful Gudadhe Patil raised the issue in the general body meeting and demanded payment of salary to contractual workers according to Maharashtra Government’s decision. Paying the workers as per the directions of Municipal Commissioner has hit the finances of the company, sources said.


NMC has paid Rs 1,033/- per tonne to KRML from January to March 2016. However, KRML has demanded Rs 1,606/- per tonne from April 2016. KRML demanded hike of Rs 573/- per tonne to meet expenses towards payment of salary to workers as per the State Government’s decision.


Earlier, in April 2016, KRML had paid Rs 1,42,41,588/- on account of salary to the workers. However, in July 2016, the company paid Rs 2,95,19,010/- as salary for the month of June to the workers. Thus, there was hike of Rs 1,52,77,423/- in the monthly salary bill, which, the company claimed, was difficult for it to manage. The hike in expenditure towards payment of wages was 107 per cent.
NMC committee headed by a Deputy Commissioner found that that the company did not prepare the bills according to WPI on base rate and there was gross violation in preparation of bills.

According to the proposal of Health Department, the rate for April, May and June 2016 was Rs 764/- per tonne but KRML refused to work at Rs 1,033/- per tonne too. Now, the committee has recommended to pay Rs 1,306/- per tonne to the company till the appointment of new contractor for lifting garbage in the city, payment of new wages to the workers, and lifting of garbage in Hudkeshwar and Narsala areas too. KRML also is willing to work on these rates till appointment of new contractor.