Reliance Industries Ltd (RIL) is set to make a substantial investment of Rs 65,000 crore to establish 500 compressed biogas (CBG) plants in Andhra Pradesh over the next five years. This initiative is part of RIL’s commitment to renewable energy and marks its largest investment outside of Gujarat.
The plants, each requiring around Rs 130 crore in capital, will be built on unused state land and are expected to generate approximately 250,000 direct and indirect jobs in the state, as reported by Andhra Pradesh government officials. The establishment of these biogas plants aligns with the state’s recently announced integrated clean energy policy, designed to attract and support investments in sustainable energy.
In a move to foster the development of biofuel projects, the Andhra Pradesh government is offering significant incentives. Key benefits include a five-year, 20% capital subsidy on the fixed capital investments for setting up CBG facilities, as well as a complete reimbursement of the state’s goods and services tax (SGST) and energy charges for five years. These incentives are expected to reduce setup and operational costs, thereby encouraging more players to enter the sector.
Andhra Pradesh’s clean energy policy underscores the state’s commitment to reducing carbon emissions and encouraging sustainable development practices. By supporting initiatives like RIL’s biogas project, the state government aims to meet its clean energy goals while boosting job creation and economic growth. Lokesh, a representative of the project, confirmed the planned investment with The Economic Times, reinforcing RIL’s role in contributing to India’s green energy transition.
This strategic move by RIL not only supports India’s renewable energy ambitions but also highlights Andhra Pradesh as a progressive state in the renewable energy landscape, attracting major investments for sustainable development.