New Delhi: Reliance Industries Ltd (RIL) is set to make a major investment of Rs 65,000 crore in Andhra Pradesh, with plans to establish 500 compressed biogas (CBG) plants over the next five years. This represents the largest investment by the company outside Gujarat as part of its commitment to clean energy, reported The Economic Times.
Each of the 500 plants will require an estimated investment of Rs 130 crore and will be built on wasteland across Andhra Pradesh, according to sources familiar with the project. According to state government estimates, the initiative is projected to create 250,000 jobs directly and indirectly. The agreement was finalized in Mumbai, during a meeting between Anant Ambani, who leads RILтАЩs clean energy division, and Nara Lokesh, Andhra PradeshтАЩs IT minister and head of the stateтАЩs cabinet sub-committee on job creation.
RIL and the Andhra Pradesh Industries Department will sign a memorandum of understanding (MoU) on Tuesday in Vijayawada in the presence of Chief Minister N Chandrababu Naidu.
The Andhra Pradesh government has recently introduced a range of incentives for biofuel projects as part of its integrated clean energy policy. These incentives include a 20% capital subsidy on the fixed capital investment in CBG plants for five years and full reimbursement of state goods and services tax (SGST) and electricity duty for the same period. Confirming the plan, Minister Lokesh stated, тАЬJob creation is one of our primary goals, and we have rolled out numerous incentives in our clean energy policy to attract investors and create employment. Reliance already has a strong presence in Andhra Pradesh, and we were eager to secure their expanded investment.тАЭ
Lokesh explained that he initiated the process after learning about RelianceтАЩs interest in expanding its CBG operations, working swiftly to finalize the action plan for the investment. тАЬFrom our initial discussions to the MoU, we completed this process in just 30 days,тАЭ Lokesh said. тАЬItтАЩs a testament to our тАШspeed of doing business.тАЩ I am thrilled that this MoU is now being signed, and weтАЩll provide all necessary support for RILтАЩs Rs 65,000 crore investment.тАЭ
The minister celebrated the potential of creating 250,000 jobs, calling it a тАЬgame-changerтАЭ for the stateтАЩs youth. Sources indicate that RIL will not only rehabilitate government wasteland but also partner with farmers, training them to grow energy crops, which is expected to raise their income.
