Hyderabad: Though the historic 77-year-old Nizam Sugar Factory was closed down in December 2015 rendering hundreds jobless, the factory’s assets have become a bone of contention between the TS and AP governments. The factory had a unit in Bobbili in Vizianagaram district of AP. Though the unit was privatised by the TD government in 1997, about 200 acres belonging to the Bobbili plant is still in possession of the NSF.
Since the factory belongs to TS, the government is claiming ownership of the land which is being opposed by the AP government. The TS government plans to take over the factory and revive it and wants to settle the dispute with AP before doing so. In 2002, the then united AP government, headed by N. Chandrababu Naidu, handed the factory over to Delta Paper Company as part of a joint-venture.
Later, a Legislative committee, appointed by late CM Y.S. Rajasekhar Reddy recommended that government should take over the factory. However, the recommendation could not be implemented. TRS chief K. Chandrasekhar Rao had promised that the government will take over the factory and restore its glory. While it was not taken over by TS government so far, the factory was shut down completely in December 2015.
In 1997, the then TD government had handed over Bobbili plant to NCS Sugars Ltd as part of privatisation, but held on to the 200 acres. After bifurcation of AP in June 2014, the TS government initiated efforts to reclaim 200 acres on the ground that the assets were purchased with funds of the NSF which belonged to TS. The Sheela Bhide Committee, appointed for the purpose of bifurcation of PSUs too is learnt to have opined that the assets of any unit will belong to that state in which they are geographically located.
“We have asked our CS to resume talks with AP CS soon to resolve land dispute in Bobbili. Our stand is clear that the land belongs to TS since it was purchased with the funds of NSL. We are trying for an amicable settlement. If not, we would be forced to move courts,” said Jupally Krishna Rao, TS industries minister.
