New Delhi: Reliance Industries Ltd (RIL) is set to make a major investment of Rs 65,000 crore in Andhra Pradesh, with plans to establish 500 compressed biogas (CBG) plants over the next five years. This represents the largest investment by the company outside Gujarat as part of its commitment to clean energy, reported The Economic Times.
Each of the 500 plants will require an estimated investment of Rs 130 crore and will be built on wasteland across Andhra Pradesh, according to sources familiar with the project. According to state government estimates, the initiative is projected to create 250,000 jobs directly and indirectly. The agreement was finalized in Mumbai, during a meeting between Anant Ambani, who leads RIL’s clean energy division, and Nara Lokesh, Andhra Pradesh’s IT minister and head of the state’s cabinet sub-committee on job creation.
RIL and the Andhra Pradesh Industries Department will sign a memorandum of understanding (MoU) on Tuesday in Vijayawada in the presence of Chief Minister N Chandrababu Naidu.
The Andhra Pradesh government has recently introduced a range of incentives for biofuel projects as part of its integrated clean energy policy. These incentives include a 20% capital subsidy on the fixed capital investment in CBG plants for five years and full reimbursement of state goods and services tax (SGST) and electricity duty for the same period. Confirming the plan, Minister Lokesh stated, “Job creation is one of our primary goals, and we have rolled out numerous incentives in our clean energy policy to attract investors and create employment. Reliance already has a strong presence in Andhra Pradesh, and we were eager to secure their expanded investment.”
Lokesh explained that he initiated the process after learning about Reliance’s interest in expanding its CBG operations, working swiftly to finalize the action plan for the investment. “From our initial discussions to the MoU, we completed this process in just 30 days,” Lokesh said. “It’s a testament to our ‘speed of doing business.’ I am thrilled that this MoU is now being signed, and we’ll provide all necessary support for RIL’s Rs 65,000 crore investment.”
The minister celebrated the potential of creating 250,000 jobs, calling it a “game-changer” for the state’s youth. Sources indicate that RIL will not only rehabilitate government wasteland but also partner with farmers, training them to grow energy crops, which is expected to raise their income.
