From Our Correspondent
Vizianagaram: In a major push for agro-processing and regional industrial growth, the Andhra Pradesh government has officially approved the handing over of 70 acres of land to M/s Patanjali Ayurved Limited. The land will be utilized to establish a mega Food and Herbal Park at Chinnaraopalli village in Kothavalasa mandal, Vizianagaram district.
Following a recent Cabinet decision, the government issued Government Order (GO) No. 131, directing the Andhra Pradesh Industrial Infrastructure Corporation (APIIC) to transfer the land parcels.
Project Details & Revival
Originally envisioned during 2014-19 under Chief Minister N Chandrababu Naidu as a larger ₹1,000-crore project spanning 172.84 acres, the proposal was put into cold storage following a change of government in 2019.
Following the formation of the TDP-led NDA government in 2024, Patanjali revived the proposal with a revised blueprint:
- Current Investment: ₹370 crores scaled for the 70-acre site.
- Product Portfolio: The facility will manufacture over 500 varieties of food, Ayurvedic, and herbal products.
- Sourcing Model: Raw materials such as pulses, spices, lemons, and millets will be sourced directly from local farmers.
- Job Creation: The project is expected to generate direct employment for over 2,000 people in North Coastal Andhra Pradesh.
Tailor-Made Financial Incentives
The proposal was cleared during the State Investment Promotion Board (SIPB) meeting held on June 18, 2026, based on recommendations from the State Investment Promotion Committee (SIPC).
Under the AP Food Processing Policy (4.0) 2024-29, the government approved customized incentives totaling up to ₹131.41 crore (amounting to 39.37% of the fixed capital investment) to be disbursed over five years from the start of commercial production:
- Capital Subsidy: 25% of eligible fixed capital investment, capped at ₹60.65 crore.
- Power Concessions: Power cost reimbursement of ₹1 per unit for five years up to a maximum of ₹3.25 crore.
- Tax Relief: Full electricity duty reimbursement alongside additional employment subsidies.