Delay in midhani plant: North-south rivalry blamed

Nellore: A tussle between groups in BJP is blamed for lack of progress on defence sector public sector Mishra Dhatu Nigam Limited (Midhani) unit proposed greenfield aluminium alloys production plant at Bodduvaripalem in Kodavalur mandal in the district.

Vice-President M Venkaiah Naidu was to lay the foundation stone for the plant in August-September last year. For the record, officials cite land-related problems for the slow pace of progress, but it is a consequence of opposition from BJP leaders from the north India who were sore over huge amount of allocations to south because of the special interest of the Vice President.

Russia will also play an important role in producing aluminium alloys for critical sectors like defence and aerospace.

After singing a Memorandum of Understanding (MoU) for setting up a joint venture for aluminium alloys with NALCO to produce high-end value products, approached the state government in the first quarter of 2017 seeking allotment of land for the proposed Rs 4,000 crore project.

The district administration then earmarked 110 acre land for the plant, which is expected to provide employment to around 500 people.

The lands were in fact assigned to farmers around 40 years ago under Community Joint Farming Societies (CJFS) scheme but they had not been used for agriculture purposes till 2011-12. So, the state government reassigned them in 2013 reducing the extent from one acre to 60 cents each for the farmers having assignment pattas even though they were not using them for their livelihood.

Officials offered Rs 10 lakh per each acre as part of land acquisition to the landholders in 2013 though the market value was only Rs 4-5 lakh in the area for lands under cultivation.

But the farmers demanded more from the government and started agitations even approaching courts.

At this juncture, Midhani invited Vice President of India M Venkaiah Naidu and defence minister Rajnath Singh for foundation-laying ceremony in August last year. However, following the demise of Union minister Arun Jaitley the bhumi puja was postponed.

"In fact, the land acquisition and hurdles are one factor. Why the project has been delayed since 2017 and what went wrong at the Centre even though the Vice President is focusing on local development? A section of leaders who were from north have been opposing the unit proposed in south India. These internal squabbles delayed the project," said a senior BJP leader from the district.

A senior official from the revenue department said though there were cases pending in court regarding lands allotted for the Midhani unit, yet the landowners had assured to withdraw them shortly. "So, there will not be any problem for the launch of the project," he added.

Venkaiah Naidu categorically announced during a recent programme in Venkatachalam that he had discussed the issue for one year with the Niti Aayog, Defence Research and Development Organisation (DRDO) and other agencies for starting the unit in the district early.

Since Chairman of the DRDO G Sateesh Reddy is from Nellore, there are expectations on early clearance of the project, he added.