Laloor waste treatment plant: KAICO tender approved

By Our Staff Reporter

THRISSUR, NOV. 28. The Thrissur Corporation Council today decided to approve the tender submitted by the Kerala Agro Industries Corporation (KAICO) for setting up waste treatment plant at Laloor, near here.

Though the approval was unanimous, a couple of councillors belonging to the Opposition had alleged during discussions that the real `runner' of the plant will be the controversial `Techno Group', whose tender for the plant had created a furore leading to its rejection and calling of tenders afresh, on behalf of the public sector unit, KAICO.

They also alleged that the clause that `...the firm (KAICO) will have full freedom to do works on the basics of sub- contract' specified in the tender is a ploy to ensure `back-door entry' of `Techno Group'.

The Council had today decided to negotiate some of the terms and conditions with the firm and finalise the agreement.

Of the six companies that submitted tenders on November 5, the tenders of Techno Group, Aluva, Eco-friendly and Sustainable Technology (EST) and KAICO were recommended by the technical committee on November 19.

The Technical Committee had recommended the acceptance of the tender of KAICO as public sector unit, subject to negotiations. The meeting of the steering committee on November 19 discussed the recommendations of the Technical Committee and decided that those tenders from firms recommending aerobic composting as a technical method can be subjected to scrutiny. They also decided to negotiate with KAICO as it is a PSU.

As per the negotiations with the KAICO regional manager on November 21, the total amount, including consultancy fees, was reduced to Rs. 50.6 lakhs from the original estimate of Rs. 134 lakhs.

One of the conditions put forward by KAICO is that 10 per cent of the construction expenses should be given as consultancy fees. The Corporation must make arrangements to order the Orgraver machine from Germany before December 10 and it should also arrange for reduction in custom duty and other procedures.

Also 10 per cent of operation charge should be given as consultancy charge. The organic manure from waste will be the property of the Corporation and it should arrange for the sales of the manure. If, in case, KAICO gives the required consultancy for the sale of the manure, the 10 per cent of the money got from sale of the manure should be given as consultancy fees.

If the resultant waste from treatment is to be dumped outside the trenching ground, the charge for transporting it (in lorries) should be incurred by the Corporation.

Interestingly, KAICO itself admits that it was using this technical method for the first time. Hence it says that it will have to conduct Research and Development (R&D). The Corporation should give the Rs. 50 lakhs of operation cost (per year) as advance.

The Corporation, KAICO demands, should also give the 10 per cent of the price earned from selling of manure. The firm will strive to sell the manure at Rs. 1,500 per tonne and if more amount is got from selling the manure, 50 per cent of the additional amount should be given to KAICO as incentive.

According to the estimate of KAICO, the expenditure per month for the plant will be Rs. 4.16 lakhs and the expected revenue (per month) is Rs. 3.64 lakhs. As the expenditure is higher than the revenue, a sum of Rs. 52,000 will have to be paid by the Corporation every month (excluding the amount fetched from selling manure) as operation cost.

The Opposition members seemed reluctant to approve the tender of KAICO by pointing out that there were many deficiencies in the conditions specified in the tender. But they said that since they have very little time at hand, they are backing the tender given by KAICO.

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Section  : Southern States
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