LMC project gets new lease of life | india | Hindustan Times
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LMC project gets new lease of life

TWO YEARS after the project was pronounced as an exercise in waste, there?s now ray of hope for the revival of Lucknow Municipal Corporation?s (LMC) ambitious venture to generate power from waste.

india Updated: Nov 23, 2006 01:20 IST

POWER FROM GARBAGE

TWO YEARS after the project was pronounced as an exercise in waste, there’s now ray of hope for the revival of Lucknow Municipal Corporation’s (LMC) ambitious venture to generate power from waste.

The Rs 74-crore project that was inaugurated by former prime minister Atal Bihari Vajpayee on November 26, 1998 may get a new lease of life following its takeover by Assets Reconstruction Company India Limited (ARCIL). According to Additional Municipal Commissioner AC Sinha, the formalities to hand over the physical possession of the 5-acre plant near Dubbaga on Hardoi Road are being worked out for its takeover by the ARCIL.

Funded by the Ministry of Non-Conventional Energy Sources (NCES) to generate 5 MW power from garbage, the project was abandoned by its Chennai-based promoter, Asia Bio-Energy Limited, on December 20, 2004 reportedly over differences with the LMC on the supply of garbage. The LMC was supposed to get Rs 60 lakh annually from the company as per the deal.  After lying defunct, the project revival was first taken up by the NCES, Secretary on May 31, 2006.

After holding several rounds of negotiations, the Central Government agency finally decided to take ARCIL’s help to breathe life into it. Consequently, the ministry wrote to the chief secretary conveying him the Centre’s decision in the matter. “We are finalising the terms and references of the new agreement,” said Sinha adding that the LMC had made it clear this time round that it would not provide segregated garbage (Bio-degradable and non-bio-degradable) to the agency.