Biomining of Legacy Waste at Brahmapuram Hits New Hurdle

Strategic Insights -

The Kochi corporation and state government are struggling to raise the required funds to complete the biomining of legacy waste at Brahmapuram. Bhumi Green Energy Corporation, the private contractor, has stopped work due to financial constraints, citing outstanding bills worth around Rs 33 crore. Despite the state government's decision to allot Rs 27 crore in two instalments, the funds have not been released due to restrictions on treasury transactions. The contractor has requested an extension to the deadline, and the corporation is planning to grant an extension until November 30.

Key Takeaways:

  • The biomining work at Brahmapuram was supposed to be completed by March 2025, but it has hit a new hurdle due to financial constraints.
  • Bhumi Green Energy Corporation, the private contractor, has stopped work due to outstanding bills worth around Rs 33 crore.
  • The state government had decided to allot Rs 27 crore in two instalments to the corporation to pay the contractor, but the funds have not been released.
  • The corporation has been distributing various welfare pensions on behalf of the state government, but over Rs 100 crore is still due to the corporation.
  • The contractor has requested an extension to the deadline, and the corporation is planning to grant an extension until November 30.
  • M G Aristotle, secretary of the UDF parliamentary party in Kochi corporation, has alleged that the private contractor is making a huge profit from the biomining work.
  • The private firm quoted the highest rate for biomining prevailing in the country, and it has been raising objections citing that the cost was exaggerated.

Statistics:

  • Rs 33 crore: Outstanding bills due to Bhumi Green Energy Corporation
  • Rs 27 crore: Amount allotted by the state government in two instalments to the corporation to pay the contractor
  • Rs 100 crore: Minimum amount still due to the corporation from the state government for welfare pensions disbursement
  • November 30: New deadline proposed for the completion of biomining work
  • March 2025: Original deadline for completing the biomining work
  • Rs 27 crore / September 2025: Deadline for the state government's first instalment of funds to the corporation

Sources:

  • Top sources within Kochi corporation
  • M G Aristotle, secretary, UDF parliamentary party in Kochi corporation
  • Journal article by Times of India
  • Documentary Proof: Contract between Kochi corporation and Pune-based Bhumi Green Energy on Nov 4, 2023