RIL
RIL to invest Rs 65,000 crore in Andhra Pradesh for 500 biogas plants
Mumbai/IBNS: Reliance Industries Ltd (RIL) is gearing up to make its largest investment outside of Gujarat, committing Rs 65,000 crore to construct 500 compressed biogas plants in Andhra Pradesh over the next five years, as reported by The Economic Times.
This initiative forms part of RIL’s broader clean energy strategy.
Each biogas plant, requiring Rs 130 crore, will be established on unused lands across the state, creating direct and indirect employment for approximately 250,000 people, as projected by the Andhra Pradesh government.
The plan was agreed upon following discussions in Mumbai between Anant Ambani, who heads RIL’s clean energy initiative, and Andhra Pradesh IT Minister Nara Lokesh, who also chairs the state’s cabinet committee on job creation.
A formal Memorandum of Understanding (MoU) is set to be signed on Tuesday in Vijayawada, with Chief Minister N Chandrababu Naidu attending, according to the report.
To encourage investment in biofuels, the Andhra Pradesh government has introduced an integrated clean energy policy that offers incentives such as a 20 percent capital subsidy on biogas plant investments over five years, along with full reimbursement of state goods and services tax (SGST) and electricity duty during this period.
Minister Lokesh confirmed the investment, stating, “Job creation is a top priority for us, and our new clean energy policy includes extensive incentives to attract investors like Reliance.”
Lokesh revealed that discussions with RIL began after he learned of the company’s interest in expanding its biogas operations, and an action plan was promptly devised to secure the investment.
“From the initial outreach to the MoU signing, we completed this process within 30 days,” Lokesh said.
“This showcases our efficiency in business facilitation. I’m thrilled to see the MoU finalized, and we’re committed to fully supporting this Rs 65,000 crore investment from RIL,” he added.
Lokesh highlighted the transformative potential of the project, especially in terms of employment.
“Creating 250,000 jobs will be a game-changer for the youth in Andhra Pradesh,” he noted.
Apart from job creation, RIL’s initiative aims to revitalize wastelands and benefit farmers by training them in energy crop cultivation, with an estimated income boost of Rs 30,000 per acre annually, ET reported, citing government sources.
The project also promises long-term economic benefits for Andhra Pradesh.
Initial estimates suggest that the 500 plants could generate Rs 57,650 crore over 25 years through SGST, electricity duty, and employment-related taxes.
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