VIZIANAGARAM: In a major push for agro-processing and regional industrial growth, the Andhra Pradesh government has announced special financial incentives and subsidies for the upcoming Food and Herbal Park to be established by Patanjali Ayurved Limited in Vizianagaram district.
Patanjali Ayurved Limited is set to establish the mega Food and Herbal Park with an investment of Rs 370 crore at Chinnaraopalli village in Kothavalasa mandal. The project is expected to significantly boost agro-processing and generate employment in North Coastal Andhra Pradesh.
The Andhra Pradesh government has issued GO No. 131 directing the Andhra Pradesh Industrial Infrastructure Corporation (APIIC) to hand over 70 acres of land to M/s Patanjali Ayurved Limited following the recent Cabinet meeting.
Vizianagaram is one of the State’s major agriculture and dairy-based districts, with a majority of its population dependent on farming and dairy activities. During 2014-19, Patanjali had proposed setting up a food processing park, an Ayurvedic research and development facility, and a cattle breeding centre in the district with a total investment of Rs 1,000 crore.
The government led by then Chief Minister N Chandrababu Naidu had allocated 172.84 acres at Chinnaraopalli village in Kothavalasa mandal for the proposed Patanjali Food and Herbal Park with an estimated investment of Rs 634 crore. The company had planned to process pulses, millets, lemons and spices grown in the region. The project was expected to generate employment for about 33,000 people in Vizianagaram and the neighbouring districts of Visakhapatnam and Srikakulam. However, the proposal remained in cold storage after the YSR Congress Party came to power in 2019.
Following the formation of the TDP-led NDA government in 2024, Patanjali revived its proposal by seeking to establish the Food and Herbal Park on 70 acres already allotted through APIIC at Chinnaraopalli village, with an investment of Rs 370 crore.
The proposal was placed before the State Investment Promotion Board (SIPB) meeting held on June 18, 2026, based on the recommendations of the State Investment Promotion Committee (SIPC).
The mega park will manufacture more than 500 varieties of food, Ayurvedic and herbal products, sourcing raw materials such as pulses, spices and millets directly from local farmers. The project is expected to generate direct employment for over 2,000 people.
The SIPB recommended tailor-made incentives of up to Rs 131.41 crore, amounting to 39.37% of the fixed capital investment, under the AP Food Processing Policy (4.0) 2024-29. The incentives will be disbursed over five years from the date of commencement of production, excluding the employment subsidy.
The approved incentives include a capital subsidy of 25% of the eligible fixed capital investment, up to Rs 60.65 crore, power cost reimbursement of Rs 1 per unit for five years up to Rs 3.25 crore, and electricity duty reimbursement.