A massive controversy has erupted over the allocation of Buggapadu Food Park land to a private firm in Khammam district. Slamming the government’s decision, the opposition BRS party has launched a fierce campaign to expose the irregularities and questionable motives behind the deal. Former minister Puvvada Ajay Kumar further escalated the attack during an interview with Prime Post, where he laid bare the deep anomalies embedded in the transaction. He explains how Telangana’s Interests Were Sacrificed in the Buggapadu Food Park Deal.
Prime Post: What evidence is presented to support the claim that the land allocation of the Buggapadu Food Park by the TGIIC is a major scam?
Ajay Kumar: The government statement had given enough evidences on the irregularities taken place in the land allocation. The land allocation of the Buggapadu Food Park to a private company by the Telangana Industrial Infrastructure Corporation (TGIIC) is a major scam. The government assigned 72 acres of land to a private firm at an unreasonably low price, which makes absolutely no sense given the actual value of the land.
Prime Post: How does the cost per acre paid by the government for the approach road compare to the price at which it sold the project land to the company, and what are the other details?
Ajay Kumar: To understand the scale of this issue, look at how the government mishandled the surrounding infrastructure. The government paid a staggering Rs 75 lakh per acre to acquire land just to lay an approach road to the factory. However, it handed over the actual project land to this specific company for just Rs 21 lakh per acre. In total, the government collected only Rs 15.14 crore from the company.
Prime Post: How did the final allocation to Deepak Nextgen Foods and Feeds Private Limited contradict their expectations?
Ajay Kumar: Deepak Nextgen Foods and Feeds Private Limited, a company based in Andhra Pradesh, received 72 acres to set up its factory. Alarmingly, this same company is now attempting to acquire additional private lands nearby by offering more than the official TGIIC rate. The shifting valuation of the land clearly points to corruption. Initially, TGIIC fixed the land price at Rs 40.47 lakh per acre. Why did TGIIC suddenly slash the price by half to Rs 21 lakh per acre? This massive reduction is nothing but a blatant scam designed to favor a private entity at the expense of the state treasury. This exposes the fraudulent dealings involved in the project.
Prime Post: How do the local farmers feel after sacrificing their land for the food park?”
Ajay Kumar: The history of this land makes the situation even worse for the local community. Back in 2008, the government procured 203 acres of land from local farmers, paying them a meager Rs1.75 lakh to Rs 2 lakh per acre. The farmers of Buggapadu sacrificed their livelihoods and accepted these low rates because they believed the project would ultimately benefit the local population.
Prime Post: Why will the manufacturing unit bring zero value to Telangana, and who is the sole beneficiary of the entire deal?
Ajay Kumar: This manufacturing unit brings zero value to Telangana. The factory produces feed for fish and prawn units, but Telangana does not have aquaculture hubs or major prawn ponds. The entire output of this factory will exclusively benefit the fish and prawn industries in Andhra Pradesh, which is the actual hub for these businesses. The private company is sole beneficiary in the deal.
Prime Post: According to conventional norms, why does a government allocate public land to private companies, and how did Agriculture Minister Tummala Nageswara Rao’s actions violate this purpose?
Ajay Kumar: Yes, any government allocates public land to private companies to generate local employment and support small-scale local businesses. In this case, Agriculture Minister Tummala Nageswara Rao used his political influence to secure this land for the company at a throwaway price. This entire deal fails to serve the public interest. There is an urgent need for a thorough investigation into this scam to protect the resources and interests of Telangana.

Editor, Prime Post
Ravindra Seshu Amaravadi, is a senior journalist with 38 years of experience in Telugu, English news papers and electronic media. He worked in Udayam as a sub-editor and reporter. Later, he was associated with Andhra Pradesh Times, Gemini news, Deccan Chronicle, HMTV and The Hans India. Earlier, he was involved in the research work of All India Kisan Sabha on suicides of cotton farmers. In Deccan Chronicle, he exposed the problems of subabul and chilli farmers and malpractices that took place in various government departments.