Centre To Auction Adilabad Cement Plant Machinery For Fifty Crore Rupees

The Central Government has initiated the liquidation of the Cement Corporation of India (CCI) plant in Adilabad, Telangana, 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 simultaneously provides financial support to revive the Vizag Steel Plant in Andhra Pradesh.

The liquidation process, managed through the Ministry of Heavy Industries, permanently seals the fate of the industrial unit located in the undivided Adilabad district. Local advocates state that the move impacts the socio-economic future of the region's backward tribal pocket.

The Adilabad CCI plant first began its operations in 1984, equipped with a production capacity of 1,200 tonnes of cement per day. During its peak, the factory served as an industrial hub for the remote area, providing direct and indirect employment to approximately 4,000 people. However, following economic reforms in the 1990s, the factory fell silent in November 1998.

For over two decades, displaced families and former workers launched various agitations and legal battles, including petitions in the High Court, to secure their livelihoods and push for the factory’s reopening. Despite these efforts, the Centre accelerated measures to permanently liquidate the plant by May 2026.

Official reports from the Central Government indicate that reviving the plant is non-viable, claiming it requires an estimated Rs 2,000 crore for modernising the outdated infrastructure. Conversely, local representatives argue the plant remains a valuable asset. The unit sits on 2,340 acres of prime government land, and geological surveys have identified high-grade limestone reserves estimated between 48 million and 77 million tonnes in the surrounding areas of Tamsi and Guda-Rampur.

The contrast between the liquidation of the Adilabad plant and the financial packages allocated to the Vizag Steel Plant has led to widespread criticism regarding the Centre's commitment to Telangana’s industrial growth.