J&K Government Rejects Patanjalis Rs 1007 Crores Business Park Proposal
Image source: swami Ramdev/facebook

J&K Government Rejects Patanjali's Rs 1007 Crores Business Park Proposal

The Jammu and Kashmir government has denied permission to Patanjali Food and Herbal Park Private Limited to acquire over 1,300 kanals of a plot for construction of an Industrial park.

The Yoga guru Baba Ramdev owned business, Patanjali, had officially forwarded the proposal to the J&K government in 2017. They had planned to invest Rs 1,007 crore for building the park, catering to about 30 different units in Jammu.

Patanjali wished to develop agriculture, horticulture and a herbal or Ayurveda- based FMCG (mainly comprising food, cosmetics and Ayurvedic medicines) units at the site.

Jammu and Kashmir’s Apex Projects Clearance Committee (APCC), responsible for clearing construction of new industrial units across Jammu & Kashmir rejected the proposal after a wait of two years.

The state government had initially shown willingness for the project. But Patanjali’s demand to forgo the lease rentals and concession on payment of land premium in 10 years became “the main grounds” for the government’s rejection of the proposal.

“The concessions sought by the company are outside the scope of J&K industrial policy as land premium is always upfront and one-time payment,” the minutes of the APCC meeting held on October 29 said. “The conditions put forth by the company are not considered and hence the proposal is dropped,” the minutes read.

According to the industry norms of Jammu & Kashmir set by the government, Patanjali was supposed to pay annual lease rentals of Rs 32.50 lakh. The Industrial Policy of J&K considers a 10 per cent hike in the lease rentals after every two years.

“Over the next 40 years of the initial period of the lease, it (the rentals) would amount to more than ₹52.89 crores. Thus, SIDCO (State Industrial Development Corporation) would incur huge losses on this account as lease rentals are the only revenue generation resource of the Corporation,” the minutes read.

“If the request of the company is considered as a one-time exception, SIDCO shall recover the land acquisition cost in five years and shall earn Rs 26 crore in next five years, besides saving ₹108 crores toward development cost,” also reads the minutes of the meeting.

Anu Malik, the director of Industries, Jammu, said to the media that this relaxation wanted by Patanjali would not suit the interest of J&K. “The company also didn’t engage in negotiations, showing that they were not serious about the project,” said the director.

Also read: After A Scuffle With Adityanath’s Govt, Patanjali Says Mega Food Park Will Stay In UP

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Editor : The Logical Indian

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