Bhubaneswar, May 7: The construction of the regional municipal solid waste plant at Bhuasuni on the city outskirts would be delayed further.

Essel Bhubaneswar MSW Limited, a consortium of two companies - Essel Infra Projects Ltd and Rochem Separation Systems (India) Private Ltd - was constituted to set up the plant at a cost of nearly Rs 200 crore and an agreement to that effect was signed on May 29 last year. However, no construction has started at the site.

The Mumbai-based consortium was expected to start operations at the plant by June 2016, but taking the present scenario into consideration, it looks highly unlikely.

Sources said the delay in execution of the project took place, because the company was expecting some "major changes" in the conditions of the agreement, but there is hardly any scope to incorporate them at this stage.

"We have sent the proposals to the state government and the authorities have refused to change the conditions. The comments of the government authorities have been conveyed to the company. Even after that, the company is approaching us with more suggestions for incorporation in the revenue-sharing agreement," said a senior official of the Bhubaneswar Municipal Corporation.

Another civic body official said: "Once the agreement is signed, there is no scope for changing the clauses, and we have already told this to the members of the consortium. If they continue to stick to their stand, there could be trouble in executing the project."

Bhubaneswar produces 350 tonnes of solid waste a day, while Cuttack produces 150 tonnes. After separation and treatment of the waste by slow incineration, this plant would be able to produce 11.5MW power. The ash, after the incineration, can be used for making fly ash bricks. The residual biodegradable waste can be composted to produce manure. There was a proposal to upgrade the plant to 600-tonnes-a-day capacity by including the municipal solid waste from Khurda, Jatni and Choudwar.

Deputy commissioner (projects and public relations) of the civic body Srimanta Mishra said: "Permission for the 11.5MW power plant has been given to the consortium by the Odisha State Pollution Control Board. For the power purchase agreement, a proposal has been forwarded to the Odisha Electricity Regulatory Commission by Grid Corporation of Odisha Ltd."

General manager (water and environment) of Essel RPW Projects Private Limited Parthapratim Ata said: "We are yet to complete the land handover agreement and other required formalities that need to be done before we can start work."

Ata also said that once the land handover deal was signed, the company could finish the project within two years.