The cost of expanding the solid waste management plant at Saligao from 150 to 250 tonnes has escalated from Rs 82 crore to Rs 103.8 crore, the cabinet was informed on Wednesday.
The cabinet agreed to the escalated costs and gave the go-ahead to Goa Waste Management Corporation and Hindustan Waste Treatment Pvt Ltd to enhance the capacity of the plant.
The entire funding of the expansion of the plant will come from a loan from Bank of Maharashtra at 7.7% interest which will be taken by GWMC. GWMC has worked out a revised payment model and cost for the proposed enhancement project at Saligao and projects non-recurring expense for six years to amount to Rs 130 crore while recurring expense for each of the six years is Rs 11.2 crore.
Thus by the seventh year, the state would have paid Rs 197.3 crore for the plant. Based on the revised terms of the payment model, the state could save Rs 24 crore over the earlier payment model, the cabinet note said.