Reliance Industries Ltd (RIL) is set to make a significant investment outside Gujarat, committing Rs 65,000 crore to establish 500 compressed biogas plants across Andhra Pradesh over the next five years. This initiative is part of RIL’s ongoing clean energy program. Each biogas plant, requiring an investment of Rs 130 crore, will be set up on wastelands throughout the state. The project is expected to create direct and indirect employment opportunities for around 250,000 people, according to estimates from the Andhra Pradesh government.

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

The Andhra Pradesh government has introduced several incentives to encourage investment in biofuel projects as part of its newly launched integrated clean energy policy. These incentives include a 20% capital subsidy on fixed capital investments in compressed biogas plants for a period of five years, along with full reimbursement of state goods and services tax (SGST) and electricity duty during the same timeframe.

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.”

Lokesh shared that he began discussions with RIL upon learning of the company’s interest in expanding its compressed biogas operations. A strategic action plan was quickly developed to secure this investment for 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.

In addition to creating jobs, RIL’s project aims to revitalise wastelands and support farmers by training them to cultivate energy crops. This initiative could boost farmers' incomes significantly, with projections estimating an increase of Rs 30,000 per acre each year, according to a government official. The broader economic impact for the state is also notable. Initial estimates suggest that the 500 plants could generate Rs 57,650 crore over 25 years through SGST collection, electricity duty, and employment-related taxes.