Panel for probe into BBMP power project

The committee also found that Gayathri Resource Recovery Limited had pledged six acres of government for a loan of Rs 52.75 crore.

Update: 2017-06-20 01:20 GMT
BBMP

Bengaluru: The legislature committee on public undertakings has recommended an investigation by the state’s Anti-Corruption Bureau into a BBMP project to produce power from garbage at Mandur, which has failed to take off despite an investment of  Rs 73.34 crore.

The report tabled in the Legislative Assembly on Monday  noted that the BBMP entered into agreement with  Gayathri Resources Recovery Limited in 2007 to produce 8 MW of power at Mandur through the processing of 1000 tonnes of garbage. Although the project evaluation committee had a few misgivings about it, pointing out that equipment worth over Rs 19.40 crore would have to be installed, the BBMP had spent Rs 73.34 crore on it by 2014. But even till September 2015 the project had failed to take off, the committee said.

When confronted, the BBMP explained that although it had supplied around 300 tonnes of garbage to the company it did not use it, saying it needed 1000 tonnes of it. Moreover, although it was given 50 acres of land for composting the rubbish, there was no progress on this front either, making Mandur a garbage dumping area.

The committee also found that Gayathri Resource Recovery Limited had pledged six acres of government for a loan of Rs 52.75 crore. Besides recommending action against those responsible for the financial loss suffered on account of the failed project, the legislature panel has asked the government to recover the six acres pledged by the  company for a loan.

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