Guwahati: The Advantage Assam 2.0 investment summit, aimed at propelling the state’s economic growth, has been overshadowed by a controversial development: the Assam government’s decision to sign a Memorandum of Understanding (MoU) with Re-Sustainability Limited (ReSL), a Hyderabad-based company formerly known as Ramky Enviro Engineers Limited.
This move has sparked criticism, given ReSL’s troubled history of solid waste management in Guwahati between 2008 and 2012, a period marked by allegations of massive anomalies and project failures.
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On Wednesday (February 26), during the second day of the summit, the Assam Forest Department inked an MoU with ReSL, committing over Rs 5,000 crore to an “integrated solid waste management project.”
This substantial investment, intended to address the persistent issue of waste disposal in Guwahati, has raised eyebrows and sparked widespread debate, particularly among those familiar with the company’s past performance in the city.
The roots of the controversy trace back to October 2008, when Ramky Enviro Engineers Limited, a subsidiary of the Ramky Group, was entrusted with the crucial task of managing Guwahati’s municipal solid waste, taking over from the Guwahati Municipal Corporation (GMC).
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The project, approved by the then Congress government led by Tarun Gogoi, was envisioned as a Rs 102-crore Public Private Partnership (PPP) initiative. Notably, Himanta Biswa Sarma, currently the Chief Minister, was the Guwahati Development Minister at the time, overseeing the GMC.
The government contributed Rs 35 crore, allocated under the Jawaharlal Nehru National Urban Renewal Mission (JNNURM), while the remaining funds were to be invested by the Ramky Group.
The ambitious project aimed to revolutionize Guwahati’s waste management system, encompassing the entire cycle from door-to-door collection and transportation to scientific processing, including the generation of 6 MW of power and compost from the waste.
Further, the company was tasked with the critical responsibilities of drain cleaning and street sweeping, traditionally handled by municipal bodies.
However, the project ran into trouble. By 2012, the Congress government, citing alleged anomalies in the project’s execution, terminated the contract with Ramky Enviro Engineers Limited.
The termination was preceded by a report from the Comptroller and Auditor-General (CAG), submitted to the Assam Assembly on March 30, 2012. The CAG report pointed out a litany of failures in the implementation of the solid waste management project.
The report stated that Ramky’s services offered no discernible improvement over the pre-existing waste management system.
It further mentioned the project’s failure to protect the environment and wetlands from leachate contamination. The fundamental objective of enhancing health and hygiene through scientific collection, transportation, and recycling of waste remained unfulfilled.
Adding to the company’s woes, the CAG report revealed that an excess grant of Rs 7.99 crore had been released to Ramky, exceeding the stipulated norms of the agreement.
Former Deputy Mayor of GMC, Balendra Bharali, had also echoed these concerns, alleging that Ramky had failed to deliver on its promises for integrated municipal solid waste (MSW) management.
In a letter to the then GMC mayor, Bharali had accused the company of a callous approach and incomplete execution of its assigned duties. He specifically pointed out the company’s failure to implement source segregation of MSW, collecting un-segregated waste from approximately one lakh households.
Now, with the Assam government under the leadership of Himanta Biswa Sarma once again engaging the same company, albeit under its new name, Re-Sustainability Limited, questions are being raised about the rationale behind this decision.
Critics pointed out the company’s demonstrably poor track record in Guwahati, marked by project failures and alleged financial irregularities.
“It is a big question, as to why the Assam govt again joined hands with such a company for development of integrated solid waste management project, which track record in Assam is such poor or bad,” a source said, questioning the logic of entrusting a company with a history of failure with such a significant project.
“It is like using old wine from a new bottle,” the source added, suggesting a repackaging of a failed endeavor.
The decision to partner with a company that has previously faced severe criticism and allegations of mismanagement has fueled speculation and calls for greater accountability.