Farmers are opposing the setting of oil refinery by the Oil and Natural Gas Commission (ONGC) as well as creation of Kakinada Special Economic Zone (KSEZ). Villagers apprehended that their dram of prosperity through cultivation will be shattered with the land acquisition. They said that they can not get an alternative land in the vicinity of Kakinada in case their land is acquired.
Senior environmentalist T.Patanjali Sastry said that the villagers are opposing the refinery. Refinery should be located somewhere up the coast. The SEZ should not gobble up fertile land because land cannot be created. He said this land sustains life in Kakinada and other adjoining places. The KSEZ signed a MoU with Natural Bio Technology for setting up the first eco friendly bio diesel plant in Kakinada Special Economic Zone. It received an in principle approval from the Central Government and special purpose vehicle was incorporated. The investment for developing infrastructure in 4000 acres of land augmenting external infrastructure for KSEZ will be Rs.2000 crores. The Chief Operating Officer of the zone said that the Government is anticipating an investment of Rs.10,000 crores in the first phase as majority of the companies are evincing interest in setting up their units.