It's been two years since the State Cabinet gave its stamp of approval for setting up a state-of-the-art plant at Pernem for converting waste plastics to fuel oil. After obtaining all the necessary permissions from various authorities, the project is yet to see the light of day as the local civic body hasn't given it the all important go-ahead. The Goan travelled to Pernem to get a status report on the project
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The ambitious project of setting up a plant for converting post-consumer waste plastics to fuel oil at Pernem is still yet to take off, even though it had got the nod from the State cabinet two years ago.
The project was initially proposed to be set up in the jurisdiction of Bicholim Municipal Council, but due to resistance by some councillors, it was shifted to Pernem Municipal Council jurisdiction.
“The project was proposed in Pernem based on the resolution by the earlier council. Though the project has all the approvals, the Pernem Municipal Council has not given the licence and approval for the project. The file has been pending with the Council since April for no justifiable reasons,” informed sources.
Sources in the Goa State Urban Development Agency (GSUDA) informed that though the project has approvals from Town and Country Planning (TCP), Fire Services and Goa State Pollution Control Board (GSPCB), which are the preliminary requisites for construction, the project still remains stuck.
Sources also divulged that GSUDA had even written to the Chief Officer on two occasions after the file was sent for issuance of licence, but there was no reply forthcoming.
When The Goan visited the proposed site of the plant, it was discovered that some excavation had been carried out. Upon inquiries, it was informed that when the contractor had just begin to commence work on the plant, he was ordered to halt the work by the Council.
“We were unaware about what was happening there. How can someone just trespass into the Council property and begin excavations? The proposed project was not put up before the council as well. We have not taken any resolution, then how can someone just start the project?” questioned Pernem Municipal Council Vice-Chairperson, Upendra Deshprabhu, who was a councillor in the past council. He also clarified that the project has not been opposed by anyone.
Meanwhile, when asked to more shed light on this hi-tech project, Pernem MLA and Environment Minister Rajendra Arlekar replied that the project has been halted as the resolution that is required to be passed for the project's go-ahead has not been taken by the municipal council.
“The resolution that is required to be passed by the Council for giving approval to the project was never taken by the Council. Now I have spoken to the new chairperson. The council is in favour of the project. It has to be put up before the council,” said Arlekar.
Contradicting the requirement for the resolution, former chairperson of the Council, Dr Vasudeo Deshprabhu, said that the resolution was not required as there is cabinet sanction to the project.
“There is no need for a resolution by the Council as there is cabinet nod for the project. How can the council go against the State Cabinet? It is a government project wherein the Council of Ministers has approved it,” said Deshprabhu.
“The municipal engineer had also raised some queries that were not complied with. This has resulted in the delay of the project,” he pointed.
As per information, the proposed plant is a patented technology of M/s MK Aromatics Limited which converts plastics from municipal solid waste to fuel/hydrocarbon derivatives, which would be then sold to various companies. Aromatics Limited shall pay royalty to the government at the rate of 2 per cent on net sale value of crude oil and the government in turn will pay 50 per cent revenue to Pernem Municipal Council. The project will be undertaken on a design, built, operate and transfer basis.
The total area of 8,000 square metres at the solid waste management site of Pernem Municipal Council has already been handed over to M/s M K Aromatics Limited on a 30-year lease period. Rs 2.5 crore is the equity capital invested by M/s M K Aromatics Limited in an escrow account, while Rs 6 crore has been given as grant to the company in three equal installments. Rs 6.5 crore is the loan proposed to be given to company on 3 per cent simple interest recoverable in 15 years’ time. If there is any escalation in the cost of the project, it will be borne by the company. All the assets will be transferred to the municipality after the agreed lease period of 30 years.
The requirement of the proposed plant is 10 tonnes of post-consumer waste plastics per day. Presently, the State generates nearly 220 tonnes of non-biodegradable and non-recyclable waste which is sent by GSPCB to cement companies in Karnataka. The transportation cost of Rs 20,000 for every 10 tonnes is borne by the State. Since December 2011, the State has sent over 4,200 tonnes of waste to the cement companies.
GSPCB Chairman Jose Manuel Noronha informed that if the proposed plant comes up in Pernem, this waste generated in the State could be sent to this plant which result in saving on transportation costs.
“Additionally, we have instructed the Continuous Ambient Air Quality Monitoring Stations (CAAQMS) to monitor real time and peak concentration levels of critical pollutants. This will require an investment of nearly Rs 60 lakh,” he said.
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FUEL FROM PLASTIC
The plant is a patented technology of M/s MK Aromatics Limited which converts plastics from municipal solid waste to fuel/hydrocarbon derivatives, which would be then sold to various companies.
- For segregated waste plastic at primary level, the government would create enabling environment by issuing appropriate guidelines and directions through suitable notifications to all corporations, municipalities and industries and to all concerned who generate plastic waste
- Govt will provide a helpline facility for collection of waste plastics
- It intends to set up a collection centre and transportation to the site
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Though the project has all the approvals, the Pernem Municipal Council has not given the licence and approval for the project. The file has been pending with the Council since April 2015 for no justifiable reasons
- Sources in GSUDA
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There is no need for a resolution by the Council as there is a cabinet nod for the project. The municipal engineer had also raised some queries that were not complied with. This has resulted in the delay of the project
- Dr Vasudeo Deshprabhu, former PMC chairperson
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The resolution that is required to be passed by the Council for giving approval for the project was never taken by the Council. It has to be put up before the council
- Rajendra Arlekar, Pernem MLA and Environment Minister
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BREAKING IT DOWN
The break-up of the cost of commissioning the project is on a turnkey basis, which includes plant and machinery, building and other items with a capacity of 10 metric tonnes per day
- Cost of the plant and machinery: Rs 10 cr
- Building and sheds: Rs 3 cr
- Utility: Rs 1cr
- Cost towards various licences and approvals: Rs 50 lakh
- Setting up of collection centre and vehicles: Rs 50 lakh
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Project funding
- The government will provide a grant of Rs 6 crore and a soft loan of Rs 6.5 crore at 3 per cent interest repayable over a period of 15 years with equated half-yearly installments. The company will contribute Rs 2.5 crore as its equity capital into the project.
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Royalty to the govt
- The company will pay a royalty on the crude oil produced and sold. The price of the crude oil will be calculated on the basis of international crude oil, average of three months and based on Central Excise Record for recording the sale.
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Expansion of the facility
- The government must permit the company to expand the existing facility to process larger volumes at the same location based on inflow as the organised collection network will result in more waste plastics collection. The incremental expenditure for expanded capacity will be equally borne by the company and the government. The government will continue to receive the royalty as offered by the company.
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