Brahmapuram Plant: Allegations Regarding Financial Assistance is Baseless

KOCHI:
GJ Eco Power Limited which was entrusted with producing electricity from Brahmapuram waste said that allegations regarding the company not received financial assistance led to the cancellation of the agreement was baseless.

The company pointed out that the Cochin Corporation has not handed over the land even after four years. The company could approach the Reserve Bank of India for financial assistance only if the land is given on lease.

A lease agreement is needed for receiving financial assistance from any of the funding agencies. The Government had made it clear in their order and the company had given only a offer letter in this regard.

Without the lease agreement from the Cochin Corporation the funding agencies will not release any amount. The Government had not mentioned why the lease agreement was not signed by the Corporation.

The Government had taken the decision to cancel the agreement without conducting a hearing from the company in this regard. The company had given the application fee to the Government and spend around Rs 35 crore for engineering design for running the power plant.

Now the Government had raised doubt about the financial situation of the company which is not clear. If there was any doubt about the financial situation of the company, why the government had kept silent for the past four years, the company asked.

The financial partners of the company are Steag Energy based at Germany, Vital Biomas and Thermax India, which are all multi billion dollar companies.

The Government had not given the clearance for the plant even after four years. The application in this regard was given to the Cochin Corporation on February 2, 2016 and approval was given on November 19, 2018. The approval from other agencies could be received only after getting the permission from the Corporation and it was also delayed.