| The project will be implemented in Andhra Pradesh and Karnataka, an official with the Malaysian government said on sidelines of India Malaysia CEO Forum held on Friday. |
| Malaysia's Deputy Prime Minister Najib Razak is on a weeklong visit to India, accompanied by a 40-member business delegation. |
| Andhra Pradesh-based Palm Tech India is engaged in oil palm development and palm oil processing. |
| "The state governments of Andhra Pradesh and Karnataka have granted 4,00,000 hectares of land as exclusive zones for oil palm cultivation," the official said. |
| "Of 4,00,000 hectares of land allotted (to Palm Tech), only 10 per cent or 40,000 hectares is found suitable for oil palm planting," he said. |
| According to him, the company currently has 8,500 hectares of oil palm estate in place and would develop another 24,500 hectares in the next four years, taking the total to 33,000 hectares by 2010. |
| The Malaysian deputy prime minister is keen on developing oil palm estates in India, as Malaysia does not have land for new plantation programs. |
| Palm Tech would develop the estates on contract farming basis with small farmers. |
| It will provide land and inputs to the farmers for cultivation of oil palm and buy back the entire produce of palm fruit bunches to process at its own refinery for palm oil and derivatives, the official explained. |
| At present, only Godrej Industries has a notable presence in oil palm plantation with around 10,000 hectares of land under cultivation. |
| Palm Tech produces around 7,500 tonne of crude palm oil annually, he said. |
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