Midhani to set up aluminium plant in Nellore

Nellore: The District Administration has finally cleared the land issues for setting up the proposed defence unit, Midhani, at Bodduvaripalem in Kodavalur mandal by transferring land to Utkarsha Aluminium Dhatu Nigam Limited, the joint venture of Midhani and Nalco. The company is getting ready to start its unit as the officials registered 110 acres of land with the initiation of the District Collector.

In fact, the defence public sector unit Mishra Dhatu Nigam Limited planned a greenfield aluminium alloys production plant at Bodduvaripalem and the land-related issues obstructed the Rs 2,000-cr project. The foundation laying ceremony was planned in August last year and has been postponed due to the death of the former Union Minister Arun Jaitley.

Midhani contacted the state government during the first quarter of 2017 for land allotment and the district administration had initially allocated 110 acres of land for Midhani and signed a memorandum of understanding for setting up the joint venture with Nalco on aluminium alloys plant for the production of high-end value products. But the company failed to float the unit due to land disputes raised by the farmers.

The State Government earlier distributed land to the local farmers some four decades ago under the CJFS scheme and they hadn't utilized them for agriculture purposes till 2010-12. So, the government reassigned them in 2013 reducing the extent from one acre to 60 cents each who were having pattas as they were not using the lands for livelihood activity.

Revenue authorities have offered Rs 10 lakh to the land in 2013 though the market value was at Rs 4 lakh per acre for cultivable lands. But the farmers expected more value and started agitations for additional money approaching the courts. Now, the Utkarsha Dhatu Nigam, which is part of Midhani and Nalco, came forward to start the unit and invited applications for the post of Chief Finance Officer as part of initiating the process.

Zonal Manager of the AP Industrial Infrastructure Corporation J Chandrasekhar said they had transferred the land to the new company on Oct 1. Collector Chakradhar Babu took special interest in resolving the issue. The company had started internal activities for initiating the activities, he said.