RIL: Reliance Industries Ltd (RIL) will invest Rs 65,000 crore in Andhra Pradesh to set up 500 compressed biogas (CBG) plants over the next five years, an Economic Times (ET) report said. This will be the company’s largest investment outside Gujarat under its clean energy initiative.
As per the report, each plant, costing Rs 130 crore, will be built on wasteland in the state and is expected to generate jobs for around 250,000 people, both directly and indirectly. The plan was finalised in Mumbai between Anant Ambani, head of RIL’s clean energy division, and Andhra Pradesh IT Minister Nara Lokesh, who also leads the state’s job creation efforts.
An MoU between RIL and the Andhra Pradesh industries department will be signed in Vijayawada on Tuesday in the presence of Chief Minister N. Chandrababu Naidu. The state government has introduced incentives for biofuel projects, including a 20% capital subsidy on CBG plant investments and full reimbursement of SGST and electricity duties for five years.
“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,” the minister said. “Reliance already has extensive investments in AP and we have been keen to get them to invest further.”
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Lokesh said he had initiated the engagement at the highest level after learning that Reliance wanted to expand its CBG footprint. An action plan was put together to make the investment happen, he said.
“From first outreach to MoU, we converted this in 30 days,” he 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.”
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The minister hailed the creation of 250,000 jobs. This he said would be a “game-changer” for the state’s youth. According to sources, RIL will not only rejuvenate government wasteland but also work with farmers and train them in the cultivation of energy crops to increase their income.
“The projections show that farmers would be able to increase their income by Rs 30,000 per acre annually,” said a government official. “At the same time, compressed biogas plants would mean numerous financial and non-financial benefits for the state. The initial estimates have put this at Rs 57,650 crore for 500 plants through SGST collection, electricity duty and taxes due to employment over 25 years.”
