Government increases grant for NMC’s bio-CNG project

09 September 2019

The state government has increased financial grant for the Nagpur Municipal Corporation’s (NMC) bio-CNG and compost projects proposed under Swachh Bharat Mission (SBM). The grant has been increased to Rs 155 crore.

NMC’s bio-CNG project

The state’s high-power committee headed by chief secretary Ajoy Mehta in the recently held meeting revised the NMC’s grants under SBM. The committee also approved the civic body’s proposal seeking to replace Waste to Energy project with bio-CNG and compost projects.

The NMC had sought a financial grant of Rs 267 crore under SBM a couple of years ago. The state had sanctioned Rs 96.22 crore of which Rs 70 crore was reserved for Waste to Energy project and remaining funds were for procurement of road sweeping machine and other machineries for solid waste management. Now, the grant has been increased by Rs 58.78 crore. Thus, grant of Rs 128.78 crore will go for bio-CNG and compost projects. The NMC will work out exact cost of the two projects and will ask private operators to bear remaining cost.

The proposal is to produce bio-CNG using 500-tonne garbage and compost through 300-tonne garbage. The civic body will use bio-CNG in running its vehicles and city buses. The central government’s Rashtriya Chemicals and Fertilizers Limited (RCF) is likely to procure compost.

The Nagpur Solid Waste Processing and Management Private Ltd, a joint venture of Noida’s Essel Infra projects Limited and Japan’s Hitachi Zosan India Private Ltd was awarded Waste to Energy project. But the company delayed the project to a great extent. With the chances of project bleak, the NMC had issued a show-cause notice to terminate the contract with the company and proposed to replace it with bio-CNG and compost projects.

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