– Crores looted by building an unnecessary factory
– Rs. 300 crore spent instead of Rs. 50 crore for palm oil unit
– ‘Maninder–Sirikant’ nexus blamed for massive financial mismanagement
– Oil Fed buried under Rs. 600 crore debt amid allegations of loot
Article Today, Hyderabad:
A big scam has come to light in the construction of the Oilfed factory at Siddipet, Telangana. The factory, which should have cost between Rs. 20 to Rs. 50 crores based on realistic requirements, is instead being built at a staggering cost of Rs. 300 crores. Behind this inflated project are two key figures – nicknamed ‘Maninder’ and ‘Sirikant’ (names changed) – who allegedly orchestrated this multi-crore corruption, pushing Oilfed into deep financial crisis.
Internal Corruption Drains Oilfed Finances…
According to insiders, former and current top officials of Oilfed have played central roles in looting public funds. A former managing director initiated the irregularities, which are now being continued by a current manager. Together, they are accused of misappropriating over Rs. 100 crores. Their financial greed has plunged the once-profitable Oilfed into over Rs. 600 crores of debt, raising serious concerns about its future sustainability.
Unnecessary and Overbuilt Siddipet Factory…
The state government has been promoting oil palm cultivation across Telangana since 2021-22. While previously limited to the old Khammam district, the new policy aims to expand cultivation to 20 lakh acres across the state. However, experts had already warned that this target is unrealistic. Despite these concerns, Maninder is believed to have masterminded the current plan, with Sirikant playing a key role in implementing it.
At Siddipet, Oilfed is building a factory with a processing capacity ranging from 30 to 120 tonnes per hour, which is far beyond what the local palm fruit production can support. For instance, outside of the Khammam district, Telangana produced only about 1,600 tonnes of Fresh Fruit Bunches (FFBs) last year, and this year’s output is expected to reach only 6,000 tonnes.Tumburu Umamaheshwar Reddy, President of the Oil Palm Growers’ Society at Ashwaraopet, stated that such a large-scale factory is not needed, even over the next ten years. He criticized the decision as a wasteful expenditure done to enable corruption.
15 Tonne Capacity Was Enough, Say Experts…
Agricultural experts had suggested that a factory with just 5 to 15 tonnes per hour capacity would have been sufficient for the yield expected from the region. Even considering supply from neighboring districts like Mahabubabad, Jangaon, Bhongir, and Gadwal, a smaller setup would have served the purpose. Ironically, the private company Free Unique – which is linked to Sirikant – is only planning a 15-tonne factory at Wanaparthy for its own plantations. Likewise, Godrej Agrovet is constructing only a 15-tonne facility at Konijerla in Khammam district. Yet Oilfed is building a factory five to eight times that size in Siddipet, at an inflated cost of Rs. 300 crores. Farmer leaders claim this is only being done to facilitate looting by Maninder, Sirikant, and a former high-ranking political leader. Umamaheshwar Reddy alleged that Sirikant is functioning as the unofficial CEO of Preunique and also holds a partnership stake in the company.
Private Players Are Cautious, Unlike Oilfed…
While Oilfed is spending recklessly, private companies in Telangana are moving cautiously. The state has allocated zones to 13 private palm oil companies, but none of them have started building factories yet – even after beginning plantation work. Most are waiting for their plantations to mature (usually seven years) before investing in processing units, knowing well that they won’t recover costs otherwise. In contrast, Oilfed is going ahead with unviable factories, putting the organization under immense financial pressure. Prior to 2019, Oilfed was a profit-making entity. Now, it is struggling under debts of over Rs.600 crores, according to Umamaheshwar Reddy.
Questionable Refinery at Siddipet…
Adding to the controversy, Agriculture Minister Tummala Nageswara Rao earlier announced plans to set up a palm oil refinery at Siddipet. But experts question the logic behind it. The crude oil used in refining is mostly produced in Bhadradri Kothagudem district. So, establishing the refinery at Apparaopet – where Oilfed’s main processing mill is already located – would have been more scientific and cost-effective. The Oilfed Siddipet factory project is being criticized as a classic case of inflated infrastructure to facilitate corruption, driven more by vested interests than actual agricultural planning or economic viability.
