- Oil palm cultivation targets exaggerated by ten times
- Oil fed Factory constructed in Narmetta based on inflated estimates
- Rs. 247 Crore spent on the factory construction
- Estimated procurement: 90,975 Metric Tonnes of FFB this year
- Actual procurement: Less than 9,000 Metric Tonnes
- Target for next year: 1,87,885 Metric Tonnes
- Allegations of large-scale misuse using Oil Fed as a front
Article Today, Hyderabad:
Surender, former MD of Oil Fed and now OSD to Deputy Chief Minister Bhatti Vikramarka, is accused of misleading the Oil Fed Board. Allegedly, he presented unrealistic targets for oil palm cultivation and production, which the Board approved without verifying. Manager Srikanth Reddy is also said to have supported these false projections.
28th Board Meeting Key in Scam…
Manager Srikanth Reddy is also said to have supported these false projections.
- The estimated cost: ₹247 crore (excluding GST).
- Officials projected that the factory would need a capacity of 30 to 120 metric tonnes per hour (TPH).
- Narmetta Zone Covers Six Districts.
Oil Fed aimed to expand oil palm cultivation across six districts: Siddipet, Jangaon, Mahabubabad, Yadadri, Gadwal, Narayanpet. - They claimed cultivation would reach 20 lakh acres in the future.
Employees now say this was a strategy to secure more funds by showing artificially high targets.
Unrealistic Projections in Board Reports
The official Board reports made the following projections:
- In 2025-26, the factory would receive 90,975 Metric Tonnes of FFB, needing a 32 TPH capacity.
- In 2026-27, the FFB supply would reach 1,87,885 Metric Tonnes, requiring a 65 TPH capacity.
- In 2027-28, the supply would touch 2,18,937 Metric Tonnes, needing a 75 TPH capacity.
- By 2029-30, the supply would increase to 2,75,704 Metric Tonnes, requiring 95 TPH capacity.
- By 2030-31, the FFB supply would hit 3,47,704 Metric Tonnes, requiring full 120 TPH factory capacity.
But these projections are far from the ground reality.
This is the table related to the oil palm yields arriving at Narmetta in the board meeting report.”
Reality: Less Than 9,000 Metric Tonnes…
According to the Horticulture Department… By March this year, only 1,016 acres were under oil palm cultivation in these six districts. The estimated production is less than 9,000 Metric Tonnes. The Board’s target was 90,000 Metric Tonnes. This huge gap shows that the projections were highly unrealistic. Employees are now asking whether the plans were made for the benefit of farmers or for personal gains.
New Factories Create Further Doubts…
Even after building the Narmetta factory for all six districts, Oil Fed soon announced new factories at: Beechupalli (for Gadwal and Narayanpet districts), Thorrur (for Mahabubabad and Yadadri districts). They argued that local factories would reduce transportation costs and help farmers. The Thorrur factory’s land has already been identified, and the foundation ceremony was conducted.
But Employees Question:
Why was a huge factory approved in Narmetta for all six districts if local factories were always needed? Why were nearly Rs.300 crore spent on Narmetta if smaller, regional factories were to come up? They suspect that the aim was to misuse public money through these changing plans.
Allegations of Organised Corruption
The inflated targets and factory plans were deliberately made to loot public funds. The real intention was not to support farmers but to benefit a few officials and contractors. Complaints have already been sent to the state government about these irregularities. There are also claims that: A key officer involved in these deals during the previous government now works closely with a powerful leader in the current government. He may be using this connection to avoid action.
Government Keeps Watch -Senior officials say:
The government is carefully watching the developments. Preliminary reports show that crores have already been spent while the promised production has not materialized. A detailed investigation into the approvals, expenses, and factory construction is expected soon. The entire issue raises serious concerns about corruption, misuse of public money, and lack of accountability in state-run corporations like Oil Fed.
