To avoid conflict with farmers, IFFCO made local farmers direct shareholders in the upcoming project. According to IFFCO Chairman (reported in The Hindu January 4, 2008), the project is the country’s first Kisan SEZ, which will generate more than 10,000 jobs. Also, according to IFFCO, the project would not displace any farmer as the land, about 2,800 acres, was already in possession of the cooperative. Alongside the multi-product SEZ, IFFCO plans to set up a technical training facility for the farmers [2].

Although, the project has got formal approval from the ministry of Commerce, Government of India, Board of Approvals for Special Economic Zones has rejected the IFFCO’s proposal. According to the SEZ board of approval, the project is not in conformity with the SEZ Act and Rules [3]. Serious concerns have been raised over possible violation of rules of the Animal Welfare Board of India (AWBI). Many fear that the government's relaxed policies on Foreign Direct Investment (FDI) and the rush to sign Free Trade Agreements (FTA) will attract global companies seeking a 'cash cow' to invest in India, which has perhaps the world's largest livestock population.

According to Varghese, "Indian dairy farmers already are in crisis with increased cost of production and non-remunerative prices. The scarcity of natural resources and crop residue for fodder has defined the death of traditional grazing practices. The productivity of cattle is based on its care and management; however farmers will be forced to switch over to efficient food, and care intensive breeds to compete. This spells a bleak future for the conservation of endemic bovine with lower yield but higher tolerance to environmental stressors."[10] Varghese further explains why such international consortia are interested in investing in such mega plants in India: "The continued 3% approximate growth of milk production, bundled with a low production cost, the per capita consumption growing at 1.5% annually, and improved incomes causing a surge in consumption makes India attractive to investments. Once the economics and the production facilities are put into place, and the 'pilot' project is found ‘acceptable', this consortium plans at least 10 other such dairy farms in other locations in India.”

IFFCO has got permission from the government to import 3,000 cows from New Zealand. With this, the project will produce around 1 lakh liters a day, which according to rule is not sufficient to set up milk products plant [3] As IFFCO failed to set up the proposed agriculture hub, the villagers are demanding to return their lands. As the project become a non-starter, it was not able to fulfill the promises of job for the local people. To press their demands to the concerned authorities, the villagers in the Nellore Lok Sabha (Lower house of the Indian Parliament) constituency and Polavaram assembly (Andhra Pradesh Assembly constituency) seat boycotted the elections held in 2012. According to the villagers more than 500 acres of land was forcibly acquired by the district administration and handed over to IFFCO without any form of compensation [4].

As per June 2014, most of the needed infrastructure has been laid down, including a 27-km boundary wall and a 14 km peripheral road. An 80 MT weigh bridge, power distribution network and a pipeline for water supply were also among the works completed. According to The Hindu [9], "a proposal came up for an investment of Rs. 2,000 to start a chemical processing plant for 100 per cent exports."