Kozhikode: The Kozhikode Municipal Corporation on Thursday renewed the garbage disposal contract of controversial firm Zonta Infratech, ignoring protests from the opposition.

The contract, however, was renewed with conditions. Before the agreement comes into effect, Zonta Infratech will have to pay a fine of Rs 38.85 lakh to the Corporation in connection with the Njeliyanparambu waste disposal contract. The penalty amounts to five per cent of the auction sum.

The contract was only renewed after the company informed the Corporation that it would pay the fine.

There are allegations that Zonta Infratech is the company primarily responsible for the fire at the Brahmapuram solid waste treatment plant in Kochi.

The firm's assurance that it would complete internal biomining and capping by April 30 also led to the extension of the contract.

However, it is interesting that the Corporation decided to extend the contract despite the firm not completing the same work, which has been agreed to be done within 30 days, in the past four years.

As per reports, representatives of Zonta Infratech gave a new assurance in a meeting called by the Mayor on March 24.