Asia’s leading business tycoon Mukesh Ambani is set to make a massive investment of Rs. 65,000 crore in Andhra Pradesh over the next five years through Reliance Industries Limited (RIL).
The plan involves establishing 500 compressed biogas (CBG) plants in the state, marking RIL’s largest clean energy investment outside Gujarat. This initiative is expected to generate employment for approximately 250,000 individuals, both directly and indirectly.
According to reports, each plant will require an investment of Rs. 130 crore and will be developed on barren land across Andhra Pradesh. The collaboration was finalized during discussions between Anant Ambani, head of RIL’s clean energy initiatives, and Andhra Pradesh’s IT Minister Nara Lokesh, who leads the state’s employment creation sub-committee.
Agreement between RIL and Andhra govt
To finalize the agreement, a Memorandum of Understanding (MoU) will be signed on Tuesday in Vijayawada between Reliance Industries Limited (RIL) and the Andhra Pradesh Industries Department, in the presence of Chief Minister N. Chandrababu Naidu.
Under the state’s recently notified Integrated Clean Energy Policy, the Andhra Pradesh government is offering incentives for biofuel projects. These include:
- A 20% capital subsidy on fixed capital investment for compressed biogas for five years.
- Full reimbursement of State GST and electricity charges for five years.
IT Minister Nara Lokesh has confirmed the investment plan, but RIL has yet to officially comment on the matter.
To create 250,000 Jobs
AP’s Minister for Education, Information Technology and Electronics, Nara Lokesh highlighted the significant impact of Mukesh Ambani’s investment, underlining job creation as a key focus for the Andhra Pradesh government.
He noted that said the foundation for this maiden biofuel project in the State will be laid on December 28 at Kanigiri in Prakasam district, adding that the state’s Integrated Clean Energy Policy provides numerous incentives designed to attract investors and boost employment opportunities.
Praising the initiative’s potential to generate 250,000 direct and indirect jobs, Lokesh described it as a “game-changer” for young people in the state. Reportedly, RIL plans not only to rejuvenate barren government land but also to collaborate with farmers. The company will provide training in cultivating energy crops, thereby increasing farmers’ incomes alongside driving clean energy production.
Benefits for Farmers
According to a government official, this initiative will significantly benefit farmers by enabling them to increase their annual income by up to Rs. 30,000 per acre. Additionally, the biogas plants are expected to bring various financial and non-financial advantages to the state, fostering economic growth and sustainable development.
RIL’s biggest investment by far
Reliance Industries’ (RIL) announcement to invest Rs. 65,000 crore in setting up 500 compressed biogas (CBG) plants marks its largest commitment to the sector so far. In comparison, India currently has only 109 functional CBG or Bio-CNG plants, according to the GOBARdhan initiative. RIL’s plan to establish 500 plants will significantly boost the country’s CBG infrastructure.
In its FY24 report, RIL also highlighted its progress with the first commercial-scale CBG plant in Barabanki, Uttar Pradesh, and shared its ambitions to expand this network. The company aims to build 25 CBG plants across India in the near term, with a target of 100 plants within the next five years.
