Goa: Cabinet nod for 26% cost hike to expand Saligao plant

PANAJI: The cost of expanding the solid waste management plant at Saligao from 150 to 250 tonnes has escalated from Rs 82 crore to Rs 103.8 crore, the cabinet was informed on Wednesday. The cabinet agreed to the escalated costs and gave the go-ahead to Goa Waste Management Corporation and Hindustan Waste Treatment Pvt Ltd to enhance the capacity of the plant.
The cabinet also approved the payment of Rs 11.2 crore to Hindustan Waste Treatment Pvt. Ltd for the operation of the plant for six years from state funds. Once the expansion is completed, the plant will be able to handle 250 tonnes of waste per day with a capacity to treat an additional 20% on peak days. As per earlier approval for the expansion which was accorded by the cabinet nod in February 2019 when the Detailed Project Report prepared by GWMC estimated the project cost at Rs 82 crore. However, the proposal submitted by concessionaire estimates the expansion cost at Rs 103.8 crore based on GSR 2019.
The proposal was placed before the Expenditure Finance Committee on May 5, 2020 and the cost escalation was approved at the Expenditure Finance Committee meeting.
The entire funding of the expansion of the plant will come from a loan from Bank of Maharashtra at 7.7% interest which will be taken by GWMC. GWMC has worked out a revised payment model and cost for the proposed enhancement project at Saligao and projects non-recurring expense for six years to amount to Rs 130 crore while recurring expense for each of the six years is Rs 11.2 crore. Thus by the seventh year, the state would have paid Rs 197.3 crore for the plant. Based on the revised terms of the payment model, the state could save Rs 24 crore over the earlier payment model, the cabinet note said.
The cabinet also gave approval for a solar plant to be setup at the Saligao plant by Goa Energy Development Agency. An amount of Rs 2.9 crore has been factored in for it.