Reliance Will Invest Rs 65,000 Crore In Andhra Pradesh For 500 Biogas Plants


Sheetal Bhalerao

Sheetal Bhalerao

Nov 13, 2024



In order to set up 500 compressed biogas plants (CBG), Reliance Industries Ltd (RIL) will invest Rs 65,000 crore in Andhra Pradesh over the next five years. 

Biggest Investment By the Company

This holds a great significance as this is going to be the biggest investment by the company outside Gujarat under its clean energy initiative.

The company is planning to set up  plants, each involving an investment of Rs 130 crore, which will be set up on wasteland in the state, as informed by the sources.

This initiative will further help in generating opportunities as they are expected to generate direct and indirect employment for 250,000 people, as estimated by the state government.

Recently the news of finalization of this plan came, which was finalized in Mumbai between Anant Ambani, who heads RIL’s clean energy initiative, and Andhra Pradesh IT minister Nara Lokesh, who also leads the state cabinet’s sub-committee on job creation.

Further, they will be signing a memorandum of understanding (MoU) between RIL and the Andhra Pradesh industries department in the presence of chief minister N Chandrababu Naidu in Vijayawada on Tuesday.

State Declared Incentives for Biofuel Projects

As we know that the Andhra government has recently introduced incentives for biofuel projects under the state’s notified integrated clean energy policy. 

Under this program, they have introduced a capital subsidy of 20% on fixed capital investment on CBG plants for five years.

Besides this they have also added a full reimbursement of state goods and services tax (SGST) and electricity duty for five years. 

While talking about this deal, Nara Lokesh said, “Job creation is one of our key goals, and we have come out with a slew of incentives in our integrated clean energy policy to attract investors and create jobs.” 

Adding, “Reliance already has extensive investments in AP and we have been keen to get them to invest further.”

“He had initiated the engagement at the highest level after learning that Reliance wanted to expand its CBG footprint. An action plan was put together to make the investment happen,” the minister said.

Adding, “From first outreach to MoU, we converted this in 30 days. It’s a great example of our ‘speed of doing business’. I’m delighted this MoU is being signed, and we will provide all necessary support for this Rs 65,000 crore investment from RIL.”

While appreciating the creation of 250,000 jobs, Lokesh said it would be a “game-changer” for the state’s youth. 

This deal with RIL will not only rejuvenate government wasteland but will also work with farmers and train them in the cultivation of energy crops to increase their income, said the sources.

Adding, “The projections show that farmers would be able to increase their income by Rs 30,000 per acre annually.” 

Sources said, “At the same time, compressed biogas plants would mean numerous financial and non-financial benefits for the state. The initial estimates have put this at Rs 57,650 crore for 500 plants through SGST collection, electricity duty and taxes due to employment over 25 years.”


Sheetal Bhalerao
Sheetal Bhalerao
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