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Hinduja Foundries' AP project in trouble

The company is setting up a forging facility at Medak near Hyderabad

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BS Reporter Chennai
Last Updated : May 07 2014 | 8:55 PM IST
The Hinduja Group's Rs 150 crore greenfield facility in Andhra Pradesh is in trouble as the state Industrial Infrastructure Corporation Ltd (APIIC) has decided not to further extend the project implementation period.

According to Hinduja Foundries, a part of the Hinduja Group, APIIC, in a letter on March 25, 2014, communicated its decision not to grant further extension to the project period and had requested the company to surrender the land within 15 days. The company is setting up a forging facility at Medak near Hyderabad.

The company had acquired land from the APIIC and the registration in its favour was to be completed upon commencing of commercial production before March 31, 2012.

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However, the company informed lack of basic infrastructure including electricity and water supply had made commercial production difficult.

In the aftermath of this, government authorities had sought to cancel the allotment of land upon which the company had obtained a stay from the Andhra Pradesh high court for maintaining status quo with regard to possession of land.

Subsequently, through a letter dated December 18, 2013, APIIC informed the company to either seek an extension of time for project or surrender the land by February 2014.

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First Published: May 07 2014 | 8:35 PM IST

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