Infrastructure – Andhra Pradesh Approves Incentives for Patanjali Food and Herbal Park Project
Infrastructure – The Andhra Pradesh government has taken another step towards strengthening its food processing industry by extending financial support for Patanjali Ayurved Limited’s proposed Food and Herbal Park in Vizianagaram district. The initiative is expected to promote agro-based industries, improve market opportunities for farmers, and create fresh employment across the North Coastal region.
Government Clears Financial Support Package
The state government has approved a range of financial incentives for the upcoming Food and Herbal Park that Patanjali Ayurved Limited plans to establish at Chinnaraopalli village in Kothavalasa mandal of Vizianagaram district. The project, which involves an investment of Rs 370 crore, has been designed to encourage agro-processing while supporting long-term industrial development in the region.
As part of the decision, the government issued GO No. 131 authorising the Andhra Pradesh Industrial Infrastructure Corporation (APIIC) to transfer 70 acres of land to the company following approval by the State Cabinet.
Project Revived Under New Government
The proposal marks the revival of an earlier plan that had remained inactive for several years. During the 2014-19 period, Patanjali had announced a much larger investment proposal for Vizianagaram, including a food processing park, an Ayurvedic research centre and a cattle breeding facility. At that time, nearly 173 acres had been allocated with plans for an investment exceeding Rs 600 crore.
The earlier proposal, however, did not progress after the change in government in 2019. Following the formation of the TDP-led NDA government in 2024, the company submitted a revised proposal seeking to establish the project on 70 acres of the previously allotted land with a fresh investment plan worth Rs 370 crore.
Focus on Farmers and Agro-Based Manufacturing
Vizianagaram is recognised as one of Andhra Pradesh’s important agriculture and dairy-producing districts, where a large section of the population depends on farming for its livelihood. The upcoming Food and Herbal Park is expected to source agricultural raw materials such as pulses, millets, spices and other farm produce directly from local growers.
According to the proposal, the manufacturing facility will produce more than 500 varieties of food, herbal and Ayurvedic products. Direct procurement from farmers is expected to improve supply chains while offering additional market opportunities for agricultural producers across North Coastal Andhra Pradesh.
Investment Board Endorses Proposal
The revised project was examined during the State Investment Promotion Board (SIPB) meeting held on June 18, 2026, after recommendations from the State Investment Promotion Committee (SIPC). Following its review, the board approved a customised package of financial incentives under the Andhra Pradesh Food Processing Policy (4.0) 2024-29.
The approved support amounts to as much as Rs 131.41 crore, representing nearly 39.37 percent of the project’s eligible fixed capital investment. These benefits will be released over five years after commercial production begins, while employment-linked assistance will be provided separately.
Incentives Aimed at Industrial Expansion
The incentive package includes a capital subsidy covering 25 percent of eligible fixed capital investment, capped at Rs 60.65 crore. In addition, the company will receive reimbursement of Rs 1 per unit towards electricity consumption for five years, subject to a ceiling of Rs 3.25 crore, along with reimbursement of electricity duty.
Officials believe the Food and Herbal Park will generate direct employment for more than 2,000 people while strengthening Andhra Pradesh’s food processing ecosystem. The project is also expected to encourage value addition in agriculture, improve industrial activity in Vizianagaram, and support regional economic growth through increased investment and manufacturing.