Fomento issues preliminary notice for termination of contract with MMC

Margao: Fomento Industrial Private Limited had issued a preliminary notice of termination to the Margao Municipal Council on 18th January 2019. In its letter, it stated the company is sustaining losses on account of MMC supplying non segregated and nonproces sable/exc luded waste. They also stated that despite the Dispute Redressal Committee’s directions to pay Rs 4 Crores, MMC has not paid the sum to Fomento. According to Fomento, a sum of Rs 11.45 Crores is due and payable by MMC. Fomento has called upon MMC to submit an action plan failing which they will take action prescribed in the concessionaire agreement signed by the two parties. The last day for the reply was February 18. The MMC Chief Officer has issued a letter on the last day of the notice period to Fomentostating the notice will be placed before the Municipal Council in its upcoming meeting for discussion and for appropriate decision. He further stated that door to door segregation of waste is in progress in all the wards of the municipal council and steps have been taken to see that only segregated Bio degradable waste reaches the Sonsodo facility.

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