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Carbon credit faux pas: Panel to probe anomalies in tendering

After wrong calculations of carbon credits by consultants involved in the scientific closure of BMC's Gorai dumping ground led to embarrassment for the civic body, the state government has set up a high-level committee to inquire into tendering anomalies.

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After wrong calculations of carbon credits by consultants involved in the scientific closure of BMC's Gorai dumping ground led to embarrassment for the civic body, the state government has set up a high-level committee to inquire into tendering anomalies.

Speaking in the state legislative assembly on Tuesday on a question by Sameer Kunavar (BJP) and others, chief minister Devendra Fadnavis said the projected carbon credits had not been generated in the project and the consultant, IL&FS, had been given full payment for their work. This had led to an audit para from the CAG, which also questioned if any action was taken against the consultant since the projected carbon credits had not been generated.

Fadnavis said they were recovering the fees paid to the consultant and had initiated action to blacklist it. He added that after a notice was sent to the consultant to recover the money paid, IL&FS said as per the agreement, a dispute resolution committee was to be established. Hence, this committee was activated.

Fadnavis said the carbon credits were to be sold to the Asian Development Bank (ADB) and the lack of adequate credits forced the BMC to purchase and then sell it. "Fortunately, the carbon credits which were purchased were bought at $3 and sold at $16... so, the municipal corporation was not damaged but (instead) benefited," he noted, stating that a high-level committee was inquiring into the tendering anomalies. The state would take action when this committee submitted its report.

The BMC had received an advance of around Rs24 crore from the ADB in exchange for the estimated generation of 4.26 lakh certified emission reduction units (CERs) over five years in 2009.

Minister of state for urban development Dr Ranjit Patil said that of the 2.74 lakh CERs which were expected by 2011, only 14,777 were generated.

 

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