Contractor backs out, MC to float new CNG tenders

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Ludhiana: The municipal corporation will have to reissue tenders for a bio-compressed natural gas (CNG) plant at the city's main garbage dump after the contractor, who had agreed to pay Rs. 132 crore over 20 years, backed out of the deal. The corporation will forfeit the contractor's earnest money deposit but has decided not to blacklist the firm.

However, the re-tendering process will take time. In Aug, officials had announced that the tendering process was near completion. The 200-ton-per-day capacity plant was to be set up on seven acres of land along Tajpur Road, with the contractor expected to dispose of garbage and pay Rs.



132 crore as a land lease or royalty over 20 years. However, officials expressed doubts about the contractor's ability to meet the financial commitment, prompting a request for clarification. "We sought clarification, and the contractor responded that they had miscalculated the amount.

They requested to withdraw their claims," said Sanjay Kanwar, MC’s superintending engineer. "We’ve decided to cancel the tenders and issue new ones.” The disposal of about 1,100 tonnes of garbage generated daily in Ludhiana remains a significant challenge for the corporation.

Efforts to establish the bio-CNG plant had been ongoing for a considerable time, and the re-tendering process will further delay the project. The National Green Tribunal (NGT) has fined Punjab’s municipal corporations, councils, and panchayats repeatedly for their failure to manage solid waste, with Ludhiana’s municipal corporation receiving the highest penalties. Despite ongoing efforts, Ludhiana’s garbage disposal initiatives remain inadequate.

The bio-CNG plant is expected to process waste and produce 8,000 cubic metres of gas each day, with the company selling off this gas to generate revenue. We also published the following articles recently Govt floats tender for Divar island eco-tourism ops The tourism department has floated a tender for the development of eco-tourism on Divar island in Tiswadi taluka. The project includes eco-cottages, wellness facilities, a meditation centre, an outdoor amphitheatre, and a restaurant.

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