Cuttack: The civic administration is in for heavy over-budget expenditure to implement the Integrated Solid Waste Management Project, 2016.

To wriggle out of it, the Cuttack Municipal Corporation is now banking on the state government to provide funds to meet the nearly Rs 60 crore over-budget expenditure to implement the project over a period of five years.

The civic officials said that initially, the project had been drawn up at an estimated budget of Rs 147.26 crore. Accordingly, tenders had been invited at the cost for its execution involving collection and disposal of garbage. The payment to the private party, according to the contract, is to be made on the basis of per tonne of garbage collected and disposed of. The per day garbage disposal had been estimated at 200 tonnes and the project budget calculated charges at around Rs 4,035 per tonne.

But, Metro Waste Handling Private Limited (New Delhi) emerged as the lowest bidder by quoting charges of Rs 6,309 per tonne, which worked out to Rs 230.27 crore, marking an over budget of Rs 83 crore in five years. Municipal commissioner Bikash Ranjan Mohapatra said: "After a post-bid negotiation, the company agreed to charge Rs 5,700 per tonne, bringing down the over budget by Rs 22 crore."

"The company, as part of the tender finalised in its favour, will after approval of the state government execute the project for around Rs 208 crore over five years," Mohapatra said.

As things stand now, the tender finalised in favour of the New Delhi-based firm with the over budget amount is with the state government for approval.

"We expect the government to fund a major part of the over budget amount while giving approval. The rest amount will be mopped up from our sources," the municipal commissioner said.

When the five-year contract with Ramky Enviro Engineers Limited of Hyderabad for garbage collection and disposal in the city had expired in April 2016, it was being paid Rs 2,400 per tonne.

After expiry of the contract, the corporation had continued on a monthly-contract basis with Ramky, but it stopped the work from April 2. The civic body had since made an arrangement with a local organisation to carry out the garbage collection and disposal job.