Reliance Industries is gearing up for a significant step forward in India’s clean energy sector. The conglomerate, led by Mukesh Ambani, is set to invest Rs 65,000 crore in Andhra Pradesh—marking its largest clean energy investment outside Gujarat. This ambitious move will drive the establishment of 500 compressed biogas (CBG) plants over the next five years.
Major biogas project details
The proposed biogas plants, will each require an investment of Rs 130 crore and will be constructed on wastelands in Andhra Pradesh. The project aims to create direct and indirect employment opportunities for approximately 2.5 lakh people, bolstering local job markets and boosting the state’s economy.
Collaboration with the Andhra Pradesh Government
Anant Ambani, who oversees Reliance Industries’ clean energy initiatives, played a pivotal role in finalizing this plan. His discussions with Andhra Pradesh IT Minister Nara Lokesh set the stage for an agreement. The memorandum of understanding (MoU) between Reliance Industries and the Andhra Pradesh industries department is expected to be signed in the presence of Chief Minister N Chandrababu Naidu.
Incentives supporting clean energy projects
This strategic investment comes as a response to the Andhra Pradesh government’s comprehensive integrated clean energy policy. The policy offers enticing incentives for biofuel projects, including a 20% capital subsidy on fixed investments in CBG plants for five years. Additionally, investors will receive full reimbursement of the state goods and services tax (SGST) and electricity duty over the same period.
A boost for employment and economic growth
Highlighting the importance of the partnership, IT Minister Nara Lokesh stated that the government’s incentives aim to attract major players and stimulate job creation. Lokesh emphasized that this development process—from outreach to the MoU signing—was accomplished within just 30 days. He called the anticipated creation of 2.5 lakh jobs a “game-changer” for Andhra Pradesh’s youth, signifying a new chapter of economic growth and sustainability in the state.
This investment by Reliance Industries underlines its commitment to expanding clean energy solutions and nurturing India’s energy independence.
