Setback: AP Govt asks Divis Labs to halt construction of new facility near Kakinada
Amravati: In a major setback to Divis Laboratories, the Andhra Pradesh Government has put a stay on the construction of its pharmaceutical unit at Kakinada, East Godavari following a spat with the locals.
As per a recent media report accounts, the drugmaker, on Saturday, was asked by the government to stop all construction works till concerns of the local people were addressed.
Considering the ongoing agitation by local villagers against the new proposed unit by the company, State industries minister Mekapati Goutham Reddy held a discussion with the Divis management virtually. During the discussion, the industries minister asked the Divis management to stop its work on the new unit.
Read Also: SEBI Slaps Rs 96 Lakh Fine On Divi's Labs CFO, Others For Insider Trading
The News Minute reports that the protest against the Divis drug plant has a long history. It started after the land under the Tondangi Mandal was allotted for the construction of the drug plant by the previous Telegu Dasam Government.
YS Jagan Mohan Reddy, leader of the opposition back then, strongly opposed the plan as it would lead to diseases of people, destroy marine wealth and affect the local hatcheries as per his opinion. However, after becoming the Chief Minister, Jagan himself gave his approval and asked Divis to move forward with the construction.
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