The NGO Satya Mev Jayate provides the back-up support to the initiative.
Jail officials said three quintals of petha can be made daily, which could go up if there is a demand.
"A large number of inmates are waiting to learn petha making skills and join the commercial activity," said jail superintendent B.R.Sharma.
Jail petha counters in the past have been opened at special events and have been profitable.