Kanak Resources Ltd to continue to collect garbage till Feb 2019

Source: The Hitavada      Date: 15 May 2018 09:47:50


Special Corespondent,

After intervention of Municipal Commissioner Virendra Singh, Kanak Resources Private Limited (KRML) has readily agreed to collect house-to-house garbage and transport it upto Bhandewadi till February 2019. Meanwhile, Nagpur Municipal Corporation (NMC) will start process for the appointment of new contractor for collection of garbage.

A meeting to resolve the deadlock between NMC and Kanak Resources Limited was held at Commissioner’s chamber on Monday. Additional Commissioner Ravindra Kumbhare, Health Officer Dr. Pradeep Dasarwar, Sanjeev Ahuja and Kamlesh Sharma were present in the meeting. It may be mentioned that Kanak Resources had warned NMC that they would not work beyond May 31 as their contract period would come to end.

Municipal Commissioner Virendra Singh directed Kanak Resources to complete the contract period of garbage collection. The local body will deduct Rs 1.45 crore per month from their payment and release remaining amount regularly, he assured.

Kanak Resources Private Limited along with ILFS is entrusted for collecting house to house garbage in the city and transport it to Bhandewadi dumping yard for disposal. The company has around 1,500 labourers and several vehicles for transportation of garbage. The company isdemanding Rs 1600 per tonne for the transportation of garbage from the civic body while it is getting only Rs 1300 per tonne. However, in the meeting, KRML meekly agreed to carryout work at rate Rs 1,300 per tonne.

Last year, the Health and Accounts Department of NMC had allegedly made an excess payment of Rs 24 crore to KRML. Then Municipal Commissioner Ashwin Mudgal in his confidential report stated that as per the original agreement, the contractor had received Rs 184.60 crore from the NMC against actual payment of Rs 160.90 crore till March 2017. The civic body had paid extra Rs 24 crore to the KRML. The civic body had stopped its payment of Rs 9 crore till now.