Fomento issues notice to MMC terminating contract

Demands payment of Rs 12.81 crore dues within 60 days

MARGAO: Major challenges lie before the Margao Municipal Council (MMC) as the concessionaire Fomento has sent a termination notice to the municipality with costs of at least Rs 12.81 crore. 
With municipal elections slated for 2020, the garbage crisis of Margao is far from ending. Facing criticism for the Sonsoddo fire, Fomento has decided to terminate the agreement. 
The notice of Fomento has asked the MMC to pay the amount in 60 days. The Fomento has also mentioned that it would not leave the premises until they are paid the amount mentioned in the notice. The Fomento is in control of the Sonsoddo plant for the last 9 years. 
Sudin Raiturkar, a Fomento official, said, “We have given the MMC 60 days to pay the amount and we are capable of taking further steps.”
The Fomento notice has a mention of the Solid Waste Management rules of segregating waste being made necessary and also has mentioned that the Fomento is according to the agreement eligible to get their investment back. 
Fomento has also mentioned in the notice that the MMC would have to pay an interest @ 12% to them if they fail to pay the money within the mentioned time. 
Now, the MMC is in trouble as the MMC doesn’t have another site to dump the daily 60-tonne garbage. The MMC won’t be able to go ahead with the termination of the concession until it has an alternate site for the garbage dumping. The MMC will exhaust its money if they pay and may have to face court if it doesn’t pay. 

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