Groundnut oil factory shut for 2 decades likely to open again

Revealing this to DT Next, Collector KS Kandasamy said, “We plan to revitalise the unit under the PPP (public, private partnership) mode and once the modalities are completed, will soon call for partners.”

Asked why the plant was closed as the erstwhile North Arcot district (comprising present Vellore and Tiruvannamalai districts before bifurcation) three decades ago led the State in groundnut production, Kandasamy said, “Lack of a long term plan resulted in locals, specially politicians, not understanding the unit’s importance led to its closure.”

“As the unit is to be operated on the PPP mode, no financial estimates to get the plant restarted are available. Estimates will be prepared only when an operator is chosen,” Kandasamy added. 

“Even today, the Tiruvannamalai district boasts of 2.25 lakh tonnes of groundnut production annually on 2.50 lakh acres in both the kharif and rabi seasons. Following the closure, farmers are forced to sell their produce to private parties,” he said.

The factory, located near the level crossing on the Tindivanam road, has rusting machinery while the godown inside the compound is used by the Tamil Nadu Civil Supplies Corporation to store their produce.

Tamil Nadu Farmers Association, Tiruvannamalai district vice president and CPM member A Balaraman said, “We organised agitations for the plant’s reopening many times over the years without avail as officials failed to realise the need and importance of the plant for a district which is a major groundnut producer. Even now, it is not too late to restart the unit, given that the district is assured of a bumper groundnut harvest due to good rain.”