Yoga guru Ramdev signed agreements with the Jharkhand government to set up an ayurveda college-cum-hospital and to promote the efficacy of herbal plants.
The memorandums of understanding were signed in the presence of Chief Minister Arjun Munda and Ramdev.
Announcing government aid of Rs.10 million for the planned hospital, Munda said: "We are working hard to develop Jharkhand as a herbal state that can benefit the common people of the country."
Best known for his programmes on spiritual TV channels, Ramdev was accused last month by Left leader Brinda Karat of violating several laws by selling ayurvedic medicines that allegedly contained human bones and body parts.
The two projects in Jharkhand will be implemented by Ramdev's Peetanjali Yoga Peeth. He said the hospital's foundation stone will be laid Feb 25.
The Haridawar-based Peetanjali Yoga Peeth was represented at the signing ceremony by its managing director Bal Krishna. The three departments of the state government that signed the pacts were agriculture, family and health and environment and forest.
While one pact aims to commercially exploit Jharkhand's herbal plants to make ayurvedic medicines, the second is for the setting up of an ayurveda hospital and research centre.
Of the 210 types of herbal plants used in ayurveda, Jharkhand has 175.
The state government will contribute land for the college-cum-hospital. Half its seats will be reserved for students from Jharkhand, Ramdev said.