Oil palm factory in Siddipet set for operations, BRS slams Congress for credit claim
The ultra-modern Siddipet oil palm factory is set to start operations within two months. Sanctioned by the previous BRS government, the plant will boost local oil palm processing, generate over 1,000 jobs, and provide higher returns to farmers.
Published Date - 25 September 2025, 12:26 PM
Siddipet: The previous BRS government’s push to boost oil palm cultivation is set to bear fruit as the ultra-modern oil palm factory at Narmetta in Nanganur mandal is expected to become operational within the next two months.
Former Chief Minister K Chandrashekhar Rao and former Minister T Harish Rao had envisaged the project soon after the Indian Institute of Oil Palm Research (IIOPR) permitted cultivation of oil palm in Siddipet in 2021. With the only factory then located at Aswaraopet in Khammam, transporting produce there was both time-consuming and cumbersome. Harish Rao planned the Siddipet unit to provide a nearby processing facility. He, along with then Minister S Niranjan Reddy, laid the foundation stone on April 13, 2022.
The BRS government had sanctioned Rs. 300 crore and allotted 62 acres for the facility. Once fully scaled, it will be the first plant in the country with a crushing capacity of 120 tonnes per hour, though it will start at 30 tonnes per hour. The factory is designed to process oil palm cultivated in 40,000 acres annually.
It also houses a 10-crore-litre water reservoir, a bio-gas unit, and a 4-MW captive power plant. Waste generated will be used in mattress manufacturing, as fish feed, and as organic fertiliser. Project manager Srikanth Reddy said trial runs were completed and the unit will be ready for operation within a month.
Officials said the factory will generate direct and indirect employment for over 1,000 people. Farmers will also benefit from higher recovery, as 100 tonnes of oil palm here will yield 20 tonnes of oil, compared to 19 tonnes at other plants, ensuring better returns.
The facility will cater not only to Siddipet farmers but also to growers in Mahabubabad, Jogulamba-Gadwal, Narayanpet, Yadadri-Bhongir and neighbouring districts.
Meanwhile, a political row has erupted with BRS leaders accusing the Congress government of trying to claim credit. Harish Rao lashed out at the ruling party, stating that Siddipet people knew the efforts of the previous government in securing permissions and establishing the factory.