TT: Wanaparthy: After 16 years, oil mill to regain its past glory

29 March 2019: Sixteen years after the closure of an oil mill due to which it had fallen prey to the national oil import policy of the then government, it will soon see the light of that day, as the State government has decided to make a one-time settlement of its debt and acquire it to run the oil mill once again, to process groundnut oil from the local farmers’ produce.

Sri Vijaya Vardhini Cooperative Oil seeds Producers’ Association, that owns 94.36 acres of land on the outskirts of Beechupally near NH44, had built an oil mill in 13,000 square feet area in their land back in 1992. Initially, production was fine, but due to the changes in national oil import policy which had facilitated large-scale import of oil into India, the mill gradually ran into losses.

On May 13, 2002, the then government gave orders for closure of the mill. Minister for Agriculture S Niranjan Reddy, who was already in Telangana movement at the time, had waged a movement along with workers and locals to reopen the oil mill.

The oil mill had run into debts amounting to Rs 26.31 crore to National Dairy Development Corporation back then. After the formation of Telangana, this oil mill went into the purview of Telangana State Oil Federation. Immediately after being inducted into the Cabinet recently, Niranjan Reddy issued directions to re-acquire the oil mill by making one-time settlement of the debt.

Telangana State Oil Federation has sent proposals to pay Rs 15.05 crore as interest and Rs 11.26 crore towards principal amount as part of the settlement deal to National Dairy Development Corporation. The proposal has been accepted.

This means the oil mill would soon start functioning and the high yield and high-quality groundnut from Wanaparthy and Nagarkurnool districts would soon be processed in this oil mill, helping the mill to reclaim its lost glory in the days to come. The oil mill would have positive implications on the farming sector and would also help in creating employment locally. Most importantly, it will now become a State asset.

Telangana Today reported

Categories: General News, India Bankruptcy

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