Midhani’s aluminium alloy plant in Nellore concludes land compensation proceedings

The prolonged efforts of Andhra Pradesh Industrial Infrastructure Corporation (APIIC) and the revenue authorities have at last brought the conclusion to land compensation issues that had delayed the proposed aluminium alloy plant of Midhani in association with Nalco, which is spread over 110 acres in Bodduvaripalem near Nellore in the state of Andhra Pradesh, India.

Furthermore, it is the first defence manufacturing unit of Mishra Dhatu Nigam (Midhani) outside of Hyderabad and the organisation has planned to invest INR 2,000 crore in the production unit, which has the huge potentiality to create employment.

The government holds 57.14 acres of land, while the remaining belonged to the Cooperative Joint Farming Society (CJFS). In 1980, this land was allotted to the poor landless people with one acre per beneficiary for gratis towards farming, but in 2010, the land was re-occupied as none of the beneficiaries exploited the land.

The government however assigned the lands once again after 2013 at the rate of 60 cents per head to the old beneficiaries and some more eligible persons.

APIIC paid INR 1 million compensation per acre of CJFS land towards the bid for the allotted land that is required for the Midhani project, while the market price was only INR 400,000.

Concurrently, the assignees collected INR 1 million per acre initially but started demanding INR 5.6 million per acre specifying the amount paid for lands acquired for the Coca-Cola unit in the zone.

The CJFS land owners restrained Midhani from constructing the project compound wall and moved the High Court to perceive their demand.

Mekapati Goutham Reddy, the state Industry and Commerce Minister, a team of revenue officials led by SPSR Nellore district collector K.V.N. Chakradhar Babu, officials of Midhani and APIIC negotiated with those involved in the litigation and convinced them to accept a one-time settlement of INR 4 lakh per petitioner as a final settlement.

The Industry minister said: “Decks are cleared for Midhani to recommence construction works. He thanked Vice-President M. Venkaiah Naidu and DRDO Chairman G. Satheesh Reddy for their support.”