RIL to invest Rs 65,000 crore in Andhra Pradesh for clean energy project

These projects are estimated to create 250,000 direct and indirect jobs, according to the Andhra Pradesh government

Reliance Industries Ltd (RIL) is set to make its largest investment outside Gujarat, committing Rs 65,000 crore to establish 500 compressed biogas plants in Andhra Pradesh over the next five years. This initiative is part of RIL’s clean energy programme, according to a report by The Economic Times.

 

The compressed biogas plants, requiring an investment of Rs 130 crore each, will be developed on wastelands across the state. These projects are expected to generate direct and indirect employment opportunities for 250,000 people, based on estimates by the Andhra Pradesh government.

 

The plan was finalised during a meeting in Mumbai between Anant Ambani, who leads RIL’s clean energy initiative, and Andhra Pradesh IT minister Nara Lokesh, who also chairs the state cabinet’s sub-committee on job creation. A memorandum of understanding (MoU) will be signed on Tuesday in Vijayawada in the presence of Andhra Pradesh Chief Minister N Chandrababu Naidu.

 

 

Incentives for biofuel projects 

To attract investments in biofuels, the Andhra Pradesh government has introduced several incentives under its newly unveiled integrated clean energy policy. These include a 20 per cent capital subsidy on fixed capital investments in compressed biogas plants for five years, along with complete reimbursement of state goods and services tax (SGST) and electricity duty for the same period.

 

Confirming the investment, Lokesh stated, “Job creation is one of our key goals, and we have come out with a slew of incentives in our integrated clean energy policy to attract investors and create jobs. Reliance already has extensive investments in AP, and we have been keen to get them to invest further.”

 

Strategic push for speedy execution 

Lokesh further revealed that he initiated discussions with RIL after learning of the company’s interest in expanding its compressed biogas footprint. An action plan was swiftly devised to bring the investment to Andhra Pradesh.

 

“From first outreach to MoU, we converted this in 30 days,” Lokesh said. “It’s a great example of our ‘speed of doing business’. I’m delighted this MoU is being signed, and we will provide all necessary support for this Rs 65,000 crore investment from RIL,” he said.

 

He emphasised the transformational impact of the initiative, particularly in job creation. “The creation of 250,000 jobs will be a game-changer for the state’s youth,” Lokesh said.

 

Boost for farmers and economic benefits 

Beyond employment, RIL’s project is expected to rejuvenate wastelands and support farmers by training them in the cultivation of energy crops. This could significantly enhance farmers’ incomes, with projections suggesting an increase of Rs 30,000 per acre annually, according to a government official.

 

The broader financial benefits for the state are also substantial. The initial estimates indicate that the 500 plants could generate Rs 57,650 crore over 25 years through SGST collection, electricity duty, and taxes linked to employment.