Decks cleared for Kribhco fertiliser plant at Sarvepalli

Nellore: Even though decks have been cleared for the proposed fertiliser plant at Sarvepalli village of Venkatachalam mandal in the district owing to a nod from the High Court, there are doubts on its establishment as the Union government earlier expressed doubts over viability such as high capital cost and excessive cost of key raw materials that would come in the way of running the unit efficiently.

The APIIC had earlier allotted 289.81 acre land to Kribhco to establish a plant for manufacturing urea with an investment of Rs 700 crore in 2015. The ministry of chemicals and fertilisers accorded permissions for setting up Kribhco's bio-ethanol project at Sarvepalli in 2017.

But Union minister for chemicals and fertilisers Dr Mansukh Mandaviya announced in the House in March 2017 that the project was found to be not commercially viable due to high capital cost, excessive cost of key raw materials like imported phosphoric acid and anhydrous ammonia as well as high transportation costs when MP V Prabhakar Reddy raised the issue in the House.

But zC S R Koti Reddy and V Niranjan Reddy have filed a public interest litigation (PIL) in the High Court in 2017 and the process has been stalled due to court dispute. They contended in the petition that the proposed plant would hinder water flow to the Kakarlapalle tank and appealed for protection of rights of the farmers.

Bench consisting of the Chief Justice Prashant Kumar Mishra and Justice D V V Somayajulu delivered orders on Tuesday, August 30, that the plant management should follow directions of the district administration and shouldn't hamper a free flow of water to the tank. The court also directed 286 acre of land to be utilised only for the plant.The Union minister of state for chemicals and fertilisers Bhagawanth Khuba pursued the matter in February this year on the request of Tirupati MP M Gurumoorthy and formal approvals have been accorded to establish the bio-ethanol project.

The Tirupati MP reviewed with the officials of Kribhco and APIIC and industries departments and asked them to prepare alternative proposals to establish a viable project at the site allotted in Sarvepalli constituency.

Union ministry of chemicals and fertilisers directed Kribhco officials to establish a bio-ethanol project and formal approvals have been accorded by the ministry for establishing the unit.