Patanjali buys 230 acres in Nagpur for Rs 60 crore to set up Food Park

Baba Ramdev’s Patanjali Ayurved has been allotted 230 acres in Nagpur to set up a food park. The announcement — a formality since Patanjali was the sole bidder — was made by Maharashtra Airport Development Company (MADC) on Thursday. Union shipping minister Nitin Gadkari had said the land would be given to Patanjali much before the tenders for the food park were invited in July.

The company will pay a little over Rs25 lakh an acre — a Rs 75 lakh discount as Rs1 crore was the original price fixed by MADC. The reserve price in the tender was fixed at Rs 25 lakh per acre and Patanjali is learnt to have bid at 5% above and will now get the land at Rs 26,25,000 per acre. It will have to pay Rs 60.37 crore in all for the land. To offset the loss, the MADC has decided to hike the cost of all remaining available land in Mihan by 15%. “The reserve price was reduced as the land was not developed,” an MADC official said.

MADC had at first got two bids: Patanjali and another company from Mumbai.

A second round of tendering was called as rules stipulated minimum three players. Only Patanjali remained in the second round. In the third round too, Patanjali was the sole bidder.

The company will have to start work within six months , and production within 18 months, said a press release. The conditions for qualifications included a minimum turnover of Rs 300 crore per annum from agro/food/herbal/forest based processing business in the last three years and a net worth of Rs 75 crore in the last financial year. As per terms and conditions, the company will have to procure raw material worth Rs 100 crore annually from farmers and tribal communities of the surrounding areas. A statement said the development of food park was proposed to boost the development of the Vidarbha region.

Source: ET Realty

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