Tug of war between NMC and KRML

Source: The Hitavada      Date: 13 May 2018 08:13:03


Special Correspondent,

A tiff has started between Nagpur Municipal Corporation (NMC) and Kanak Resources Private Limited (KRML) over the end of contract period of the latter. While KRML has informed NMC that its contract expires on May 31 and it would not work beyond this date, the local body wants KRML to continue for nine more months as the agency had started its work that much late.

Health Department of NMC has claimed that though the contract period of KRML is for 10 years -- that is, till May 31, 2018 -- KRML has to continue for nine more months as it could not start its work on time in 2008 when the contract was awarded. Hence, NMC has held, the contract with KRML will end in February 2019. Therefore, KRML can not stop working after May, NMC officials said.
As KRML and NMC both are sticking to their respective stand, a tricky situation prevails as far as garbage collection in the city is concerned.

To resolve the issue, a meeting is being organised on May 14 at NMC. Virendra Singh, Municipal Commissioner, will discuss the issue with KRML delegates to resolve the issue. Meanwhile, NMC is also mulling over a proposal to float fresh tender for appointing new contractor for the work of garbage collection.

KRML, along with ILFS, is into house-to-house garbage collection and transporting the same to Bhandewadi dumping yard for disposal. The company has around 1,500 labourers and several vehicles for transportation of garbage. Following hike in salaries of contractual workers, the company is demanding Rs 1,606/- per tonne rate for transportation of garbage as against Rs 1,300/- per tonne it is getting presently.

Last year, Health and Accounts Department of NMC had alleged excess payment of Rs 24 crore to KRML. Ashwin Mudgal, the then Municipal Commissioner, in his confidential report, had stated that as per the original agreement, the contractor had received Rs 184.60 crore from NMC as against actual payment of Rs 160.90 crore till March 2017.
When the civic body realised that it had paid Rs 24 crore more to KRML, it stopped payment of Rs 9 crore to the agency till now. Also, it did not pay the amount for March 2018.

As KRML has not received any payment for March 2018, it has issued a letter to NMC threatening to withdraw from garbage collection and transportation work. The company had demanded Rs 1,606/- per tonne for collecting garbage from households for April, May, and June 2016.
However, NMC paid Rs 1,033/- per tonne to the agency for January to March 2016. KRML demanded the hike of Rs 573/- per tonne to meet the expenses for payment of salary to workers as per the Maharashtra Government’s decision.

KRML has issued another letter to the civic body threatening to stop collecting garbage as its 10-year contract will get terminated on May 31, 2018.
A senior Health Officer of NMC claimed that the contract was till February 2019 as KRML had taken nine months to start its work in the city in the year 2008 when the contract was awarded to it. The total contract period is of 10 years and it will get completed in the year 2019. Therefore, the company can not stop the work midway, he added.