Reliance Industries to invest ₹65,000 crore in Andhra Pradesh biogas venture.

Reliance Industries (RIL) is set to invest ₹65,000 crore in Andhra Pradesh to establish 500 Compressed Bio Gas (CBG) plants over the next four to five years, marking RIL’s largest clean energy commitment in India outside Gujarat. This substantial investment aligns with a Memorandum of Understanding (MoU) signed on Tuesday in Amaravati between RIL and the Andhra Pradesh government, with the signing attended by Chief Minister N. Chandrababu Naidu.

Each CBG plant will require an investment of ₹130 crore and is expected to generate direct and indirect employment for approximately 2.5 lakh people. According to government projections, this initiative could yield financial benefits totaling ₹57,650 crore over 25 years through State Goods & Services Tax (SGST) collection, electricity duty, and employment-related taxes.

The project is set to benefit local farmers significantly. By cultivating energy crops like Napier grass, farmers could earn up to ₹30,000 per acre annually. With each plant producing an estimated 7,800 tonnes of CBG annually—amounting to around 39 lakh tonnes across all plants—this initiative will contribute to the state’s GDP and industrial growth. The renewable fuel generated could power approximately 9.38 lakh light commercial vehicles daily, replacing fossil fuels with green energy.

“Andhra Pradesh’s conducive environment for renewable energy, backed by ample solar and wind resources and a supportive regulatory framework, has already driven significant progress in clean energy,” stated the government. The state recently unveiled its Integrated Clean Energy Policy, aiming for a daily CBG production target of 10,000 tonnes.

Further supporting biofuel initiatives, the Andhra Pradesh government is offering a 20% capital subsidy on fixed capital investment for CBG plants with capacities of at least 10 tonnes per day (TPD), applicable to the first 1,000 plants.

HBL