Patel, who was also the first deputy prime minister of India, died on December 15 1950, three years after Independence, at the age of 75.
"We remember the great Sardar Patel on his Punya Tithi. Every Indian is indebted to Sardar Patel for his monumental service to our nation," Modi tweeted.
Known as the "Iron Man" of India, Patel was instrumental in uniting the country through merger of small princely states.
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