The Hindu Business Line : Garbage disposal co threatens treatment plant closure in Thiruvananthapuram

THE Poabs Group, operating agency for disposing garbage generated within the City Corporation limits, has threatened to shut down the treatment plant in the suburbs.

In its notice to the civic body, the company has demanded that an arrangement for buy-back of the organic fertiliser generated as a by-product at the treatment plant be implemented, failing which it would be forced to close it down from October 15.

The notice has created new problems for the City Corporation even as it has been trying to streamline the garbage disposal system, which has been faltering over the past few days.

The Poabs Group maintained that its inability to find a ready market for the organic fertiliser had led to operational losses, forcing it to mull the closure option. It alleged that the State Government had gone back on its word on ensuring profitable running of the plant.

Mr Abraham Jacob, Managing Director, said the company was finding it difficult to meet its loan repayment liability. Fifteen thousand tonnes of unsold manure had accumulated on the factory premises over the last 30 months, which ruled out intake of fresh loads of garbage.

The Government had repeatedly failed to recast the terms of the agreement with the company. Neither had efforts to ensure the movement of manure out of the plant premises taken off, Mr Abraham said.

"Of late, the lull in the cardamom and vanilla farm economy has affected our own marketing efforts. Given the circumstances, we are left with no alternative but to shut down operations."

On the other hand, the City Corporation officials suspect that this is a pressure tactic employed by the company to have its way. According to them, the Corporation has sanctioned a Central subsidy of Rs 40 lakh to the company to help it tide over its crisis. Funds have also been committed for improving facilities at the plant.

The Corporation intends to hold a meeting shortly to discuss the issue and sort out the differences with the company.