Central Government to Liquidate Adilabad Cement Corporation Plant for Rs 50 Crore
The Central Government of India has decided to liquidate and scrap the Cement Corporation of India (CCI) plant in undivided Adilabad, issuing tenders to auction its machinery for Rs 50 crore. The decision, highlighted on June 5, 2026, has drawn sharp criticism for exposing regional disparities, particularly as the Centre continues to fund the revival of the Vizag Steel Plant in Andhra Pradesh.
The liquidation process was fast-tracked by the Ministry of Heavy Industries, which issued tenders to sell off the factory's assets as scrap. This follows a series of steps accelerated by the central government in May 2026 to permanently shut down the industrial unit, which has been inactive for over two decades.
The Adilabad CCI plant originally commenced operations in 1984, equipped with a production capacity of 1,200 tonnes of cement per day. During its peak, the facility served as an industrial hub for the local tribal pocket, providing direct and indirect employment to approximately 4,000 people. However, the factory's sirens fell silent in November 1998 following economic reforms and financial difficulties.
Since the closure, local workers and displaced families have launched numerous agitations demanding the factory's reopening. Although the workers sought legal recourse through the High Court, technical legalities left them without relief, culminating in the Centre's recent decision to dismantle the plant.
The central government has justified the liquidation by stating the plant is no longer economically viable, estimating that modernisation would require an investment of nearly Rs 2,000 crore.
Local advocates and reports contest this view, pointing to the valuable assets associated with the site. The plant currently sits on 2,340 acres of prime government land. Additionally, geological surveys reveal that the surrounding areas of Tamsi and Guda-Rampur contain massive, high-grade limestone reserves estimated between 48 million and 77 million tonnes, which could have supported a revived operation.
The decision to auction the plant's machinery for Rs 50 crore has been described by local representatives as a major blow to the economic future of the region, leaving dependent families without hope of industrial recovery.
