Article Today, Siddipet:
The Oilfed palm oil factory at Narmetta in Siddipet district is facing serious allegations even before its official launch. Although officials have decided to begin trial operations from Friday and aim for a formal inauguration later this month, doubts persist over the plant’s long-term viability. Officials are reportedly struggling with unresolved operational concerns and internal inefficiencies.
Excessive Investment Raises Eyebrows
The factory, being built with higher-than-required processing capacity, is drawing criticism for misusing public funds. Despite local production constraints, Rs. 247 crore has been approved for a facility with an initial 30 metric tonnes per hour (TPH) capacity, scalable up to 120 TPH. Farmers’ associations allege this is a classic case of overspending on an unnecessary project.
Allegations of a Larger Conspiracy
The Telangana Oil Palm Growers’ Association has openly accused Oilfed of facilitating large-scale financial misappropriation under the guise of development. Association leaders are demanding answers on why such a high-capacity plant was sanctioned in Narmetta, where oil palm cultivation is minimal. Critics suggest that a powerful group known as “Triple S” is driving this project with vested interests.
Mismatch Between Fruit Supply and Factory Scale
Last year, excluding the erstwhile Khammam district, Telangana produced only 1,600 tonnes of oil palm fruit. This year, projections estimate around 15,000 tonnes — just enough to keep the Narmetta plant running for a week. Yet, the plant is designed to process up to 720 tonnes per day. Even with reduced operation of 20 hours a day, it needs 600 tonnes daily. This huge gap between capacity and supply has left officials scrambling to arrange fruit from other regions.
Private Players Missing in Action
Interestingly, while Oilfed is investing heavily, private players are largely inactive. Thirteen private companies were allotted processing zones across Telangana, but none has built a factory, despite plantation activity in their zones. This contrast has triggered suspicions of selective planning and misuse of public money by the corporation.
Secrecy Deepens Suspicions
The entire project is being executed with tight secrecy. Officials have restricted access to the factory and are not disclosing construction details or materials used. The site is under constant surveillance, drawing comparisons to a high-security zone. “No one will be allowed inside until the inauguration,” stated factory manager Srikant Reddy, adding to local mistrust.
Mounting Pressure for Transparency
As criticism intensifies, stakeholders are calling for an independent review of the Narmetta project. Farmers and civil society groups demand accountability and transparency in the use of public funds. Unless clear answers emerge, the factory risks becoming a symbol of misgovernance rather than progress.
