Kerala govt approves lease model for waste-to-energy facility in Brahmapuram

The Government has issued an order converting the concessional agreement signed between the Kochi Corporation and GJ Eco Power Private Ltd., the company entrusted with the construction of the waste-to-energy plant at Brahmapuram, into a lease agreement.

The Hindu reports that the civic body had signed the concessional agreement to set up the plant in 20 acres near the now defunct solid waste management plant at Brahmapuram in 2016. The company had submitted a letter requesting that the pact should be converted into a lease agreement as banks would not provide loans for the project if it was not categorised as a lease agreement.

Representatives of GJ Eco Power Ltd. have reportedly said they are ready to receive municipal solid waste for the energy plant from February 2021. “The process of bio-drying of waste after sorting recyclable items and treating them for obtaining refused derived fuel will be carried out till August. We expect to start power production by September,” they added. The Kerala State Electricity Board has agreed to purchase power generated by the 9.76-MW plant at the rate of ₹6.17 per unit for a period of 20 years from the commercial operation date.

According to the agreement, the Kochi Corporation will provide 300 metric tonnes of waste, including biodegradable and non-bio-degradable waste, on a daily basis to the company.

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