Yogi govt clears decks for Patanjali's Food Park after pull-out threat

The Uttar Pradesh (UP) government approved on Tuesday a proposal for the Patanjali Group of Baba Ramdev to set up a food processing park at Greater Noida.

The state Cabinet allowed a transfer of land between two of Patanjali’s subsidiaries for this. The estimated investment is a little over Rs 20 billion. The proposed facility would be entitled to various incentives under central and state policies.

Health Minister and State Government Spokesperson Sidharth Nath Singh said the Cabinet decision had ironed out all irritants in the proposed project. Earlier this month, Patanjali’s Chief Executive, Balkrishna, had announced on Twitter that the group was planning to take the proposed facility elsewhere, due to non-cooperation by state officials resulting in months of inaction.

Chief Minister Yogi Adityanath then spoke to both Ramdev and Balkrishna, with an assurance to expedite the matter. The state government has been trying hard to attract private investment.

In 2016, under the previous Akhilesh Yadav regime, Patanjali Ayurved was allocated 455 acres along the Yamuna Expressway for setting up a food park, under the UP infrastructure and industrial development policy of 2012.

Later, Patanjali Group asked that 91 acres be transferred to its subsidiary, Patanjali Food and Herbal Park, which would ultimately set up the facility. However, permission was denied, as the rules barred subleasing of land even between subsidiaries, although the group maintained that both were sister concerns.

The food park was projected as having a capacity to process 400 tonnes of fruit and vegetables a day, apart from 750 tonnes of organic wheat flour.

After the group said it had decided to take the project out of UP, Industry Minister Satish Mahana had said the government would take every step to ensure it stayed in the state.

Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel