The Hindu Business Line : AP Govt nod for palm oil plant

AN oil palm processing unit, with an investment of Rs 5 crore and with 2.5 tonne-per-hour crushing capacity, proposed to be implemented by the Andhra Pradesh Cooperative Oilseeds Growers Federation Ltd (AP OILFED), has got clearance from the Andhra Pradesh Government.

The palm oil plant will come up in Aswaraopet, Khammam district. The AP OILFED, Hyderabad, has been asked by the State to meet the estimated cost from its internal accruals, pending receipt of grant from the Centre, according to a State Government Order.

The State Government nod comes in the wake of representation from the farmers of Khammam district that the project implementation was getting delayed. An estimated 10,000 tonnes of fresh fruit bunches (FFBs), were likely to be produced in the district, which needed processing.

The Managing Director of AP OILFED had offered to the Government its willingness to establish the plant in Aswaraopet, and meet the demands of the farmers and expanding oil palm cultivation in the district. A total of 7,500 tonnes of FFB of oil palm was available at the end of financial year 2004-05. Estimates put the figure to touch 17,500 tones by 2008-09.

In view of the development, the AP OILFED urged the State Government to consider its proposal to take up the project by meeting the total costs of Rs 5 crore from its internal accruals pending the receipt of grant. The Federation has an accumulated net profit of Rs 13.41 crore and net worth of Rs 29.92 crore as on date, it said.

As per plans, the project, is expected to get up to Rs 3 crore funding grant from the Technology Mission of Oilseeds and Pulses, under the Union Department of Agriculture and Co-operation and the balance has to be borne, preferably by the State Government.

The plant at Aswaraopet would be the second in the State and its capacity is scalable to 5 tonnes per hour. The first was set up in Pedivegu in East Godavari district.

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