Reliance’s ₹65K cr biogas push to transform Andhra Pradesh’s green economy

Reliance Industries Ltd (RIL) will invest ₹65,000 crore in Andhra Pradesh to establish 500 compressed biogas (CBG) plants over the next five years, marking the company’s largest clean energy investment outside Gujarat. Each plant, costing approximately ₹130 crore, will be built on wasteland and is expected to generate employment for 250,000 people, according to state government estimates. The agreement was reached in Mumbai between Anant Ambani, head of RIL’s clean energy initiatives, and Andhra Pradesh IT Minister Nara Lokesh, who also leads the state’s cabinet sub-committee on job creation. A formal memorandum of understanding (MoU) will be signed in Vijayawada, witnessed by Chief Minister N. Chandrababu Naidu.

The Andhra Pradesh government has introduced incentives under its integrated clean energy policy to attract biofuel investments, including a 20% capital subsidy on fixed investments for CBG plants, along with full reimbursement of state GST and electricity duty for five years. Lokesh highlighted job creation as a key driver for the state, noting that swift, high-level engagement expedited the investment process from initial outreach to MoU signing in just 30 days. He expressed confidence that this significant investment would positively impact the state’s youth by creating numerous jobs.

RIL’s project will involve revitalizing government wasteland and working closely with local farmers, who will receive training to cultivate energy crops, potentially increasing their income by ₹30,000 per acre annually. Financial projections suggest that the CBG plants could generate ₹57,650 crore in SGST, electricity duty, and other taxes over 25 years, benefiting both the state’s economy and its environmental sustainability.