Divi’s proposed unit near Kakinada runs into resistance over land grab charges
Hyderabad-based Divis Laboratories is investing Rs500 crore to set up its factory near Kakinada in Andhra Pradesh
Hyderabad: Police on Tuesday removed dozens of locals and political activists—led by the Communist Party of India (Marxist)—from the site of a proposed Divis Laboratories factory near Kakinada in Andhra Pradesh after protests flared over allegations of land grab.
An unspecified number of protesters were also arrested while they were trying to gather at the drug maker’s proposed factory at Thondangi mandal near Kakinada.
Police took local YSR Congress Party legislator Dadisetti Raja in preventive custody before letting him off.
Raja extended his support to the agitation against the upcoming plant, which is being opposed on grounds of alleged pollution and forcible acquisition of land.
Hyderabad-based Divis Laboratories is investing Rs500 crore to set up the factory.
“This will be the third large manufacturing facility for the company and will help de-risk its operations and achieve visible growth opportunities," said Murali K. Divi, chairman and managing director of the company, in a speech to shareholders at the company’s recent annual general meeting.
The company said the new facility, expected to be operational in the second half of financial year 2017-18, will be funded through internal accruals.
The proposed facility will be the sixth unit of Divis, which has five manufacturing units in Telangana and Andhra Pradesh.
The Hyderabad-based company was allotted 505 acres of land by the Andhra Pradesh government near the coastal town Kakinada, and the company says it is in the process of obtaining approvals.
However, land acquisition remains an unresolved issue, with local farmers refusing to part with their land. Locals also claim the factory will result in air and water pollution.
A public hearing for the project was conducted amid tight security at Thondangi village in June.
Divis manufactures generic active pharmaceutical ingredients or the key raw materials that go into making formulation drugs, custom synthesis of active ingredients for innovator companies, other speciality chemicals and nutraceuticals.
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