Thiruvananthapuram: The city is headed for a fresh garbage crisis as processing activities at the treatment plant at Vilappilsala have ground to a halt after the Kerala State Electricity Board (KSEB) turned off power supply to the unit for non-payment of dues.

The City Corporation has initiated moves to restore the functioning of the plant. The Mayor held a meeting with the representatives of the private company operating the unit.

The company failed to remit the outstanding payment of Rs.1.93 lakh to the KSEB, said corporation sources.

The plant managers, however, maintained that the district panchayat was yet to clear a pending payment of Rs.70 lakh for the offtake of the organic fertilizer manufactured as a byproduct.

Processing activities at the plant were paralysed since three days, said the Health standing committee. Its chairman, G.R. Anil, said the situation could turn into a crisis if it was allowed to drag on. The district panchayat had agreed to release the funds due to the company after completing the treasury formalities. The representatives of the company had also promised to clear the amount due to the KSEB, he said.

The delay in settling the financial problems faced by the plant since its inception had left the company lurching from one crisis to another, said Joseph Jacob, director, Poabs Envirotech. He admitted that the operations of the plant were paralysed since the past three days. "The heavy operating loss and the mounting financial liability have led to a crippling situation for us. The Government will simply have to support us if the plant is to continue operations in a sustainable manner," he said.

The processing plant was set up as a joint venture between the corporation and Poabs Envirotech. The promoting company is demanding a permanent buy-back arrangement for the fertilizer and a bail out package by the Government to compensate its losses. It also wants the Government to restructure its debt servicing obligations.

Civic officials accuse the company management of resorting to pressure tactics. "At a time when the corporation is going all out to streamline the garbage collection and disposal mechanism, the company may be hoping it can use this pressure to get the Government and the local body to concede its demands," said an official.

Mr. Jacob, however, said the company was willing to pull out and let the Government take over the project after compensating it for the accumulated losses. "We are not in a position to absorb any more loss. Let the Government appoint an independent appraiser to value the investment," he said.

Meanwhile, the Government cleared the setting up of a new committee to analyse the problems facing the project and recommend solutions. The committee was expected to submit its report in three weeks.

Simultaneously, the corporation cleared the decks for the construction of an engineered sanitary landfill to dispose of the tonnes of inert wastes accumulating on the premises of the treatment plant. The project, to be executed by Costford, was awaiting Government clearance. The work was expected to begin by the end of the month, said Mr. Anil.

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