Stone laid in 2016, Patanjali assures to start grinding soon

Nagpur: Patanjali Ayurved, which has acquired 230 acres land in the domestic tariff area (DTA) of Mihan project six years ago, has once again assured to start production at its unit in Nagpur soon.
In a meeting with Deepak Kapoor — managing director of Maharashtra Airport Development Company — the agency developing Mihan, Patanjali officials shared pictures of wheat bags stacked at the unit here. They said the company would be starting with production of packaged wheat flour in around a month.
Kapoor during his visit to Nagpur had held a meeting with Patanjali officials to assess the progress at the site.
“The meeting lasted for 40 minutes and the MADC has expressed unhappiness over the slow progress on the project,” Kapoor told TOI.
However, the company officials also showed maps of the development at the site and photographs of a substantial amount of wheat bags kept in the plant. These will be used for making flour, he said. The officials have assured that production is expected to start in three to four weeks.
“They were told to start work first, no matter if it is for a smaller quantity initially. Production can be scaled up eventually,” Kapoor told TOI.
On any chance of action against Patanjali for the delay in starting production, Kapoor said at present generating employment through the project is the priority. The matter concerning delay was discussed in the MADC board of directors’ meet.
Patanjali Ayurved managing director Acharya Balkrishna said the company has so far pumped in Rs600 crore in the plant. With a substantial amount already invested, there is no question of backing out or even the government taking action.
Admitting that the work was delayed for various reasons, he said initial production would begin with wheat flour. However, there are also plans to start processing Nagpur oranges after the fruit arrives in forthcoming season, he added.
Balkrishna said issues like road connectivity have now been looked into by the government. This is expected to speed-up the work, he added.
Over the years, plant and machinery have been installed in the DTA land. Production remains to begin.
Apart from the DTA, Patanjali has been allotted over 100 acres land within the SEZ also. A source said Patanjali’s letter of approval (LOA), which is the basic document for operating in the SEZ, has expired.
Project Report Card
Baba Ramdev’s Patanjali Ayurved plans its first greenfield unit at Mihan
Patanjali was single bidder for land in first two rounds
MADC reduces reserve price to Rs25 lakh from Rs1 crore per acre
Patanjali bagged the deal in third round, competing with one more company
Stone laying done in Aug 2016; co announced to operationalize unit in 6 months
Spread in 230 acres in domestic tariff area of Mihan, unit dubbed to be world’s biggest food processing zone
MADC took a hit of Rs170 crore in the deal after reducing reserve price
To compensate the loss, MADC hiked cost of remaining land in Mihan by 15%
Another over 100 acres allotted to co in SEZ
Letter of approval for Patanjali project has expired
No work has started on the SEZ land yet
Progress was slow at the DTA land
Project which faced hurdles earlier also came to halt due to Covid