The Hindu : Andhra Pradesh / Hyderabad News : Civic body serves notice on Selco

Online edition of India's National Newspaper
Saturday, Oct 27, 2007
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Andhra Pradesh

Andhra Pradesh - Hyderabad

Civic body serves notice on Selco

HYDERABAD: Selco, the pioneering garbage to power plant, has been served notice by the GHMC for non-payment of royalty fee right from its inception.

The GHMC has threatened to halt supply of municipal solid waste if an appropriate reply is not forthcoming from the Solid Waste to Electricity Company International Ltd.

The firm has also been asked to review the land lease rate for its pellets unit set up at Gandhamguda in 2000. Selco’s 6.6-MW power plant located at Elikatta village, Shadnagar, began functioning four years ago. It has a long-term agreement with GHMC for supply of 700 tonnes of garbage everyday and a 20-year power purchase agreement with APTransco. The Rs. 29-crore plant is being jointly promoted by the Technology Information Forecasting and Assessment Council under the Ministry of Science and Development (Tifac) and the A.P Technology Development and Promotion Centre and Technology Development Board. GHMC Additional Commissioner (Health & Sanitation) R. Rama Mohan Raohas charged Selco with not paying a single pie as royalty despite the unit running successfully.

“We only charge them Rs. 10 per tonne of garbage and the total amount has come to Rs. 50 lakh. Selco management has not responded to our reminders and though we are also stakeholders, we are not invited to its meetings,” he says. The company pays Rs. 25,000 (5 p.c. of land value) towards lease of the 10- acre land at Gandhamguda and it is time to review the fee as land prices have hit the roof, the official says.

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