New Delhi: Reliance Industries Ltd (RIL) will invest Rs 65,000 crore in Andhra Pradesh to set up 500 compressed biogas plants (CBG) over the next five years. This will be the biggest investment by the company outside Gujarat under its clean energy initiative.
The plants, each involving an investment of Rs 130 crore, will be set up on wasteland in the state, said people aware of the matter. They are expected to generate direct and indirect employment for 250,000 people, as per the state government’s estimate. The plan was finalised in Mumbai between Anant Ambani, who heads RIL’s clean energy initiative, and Andhra Pradesh IT minister Nara Lokesh, who also leads the state cabinet’s sub-committee on job creation.
A memorandum of understanding (MoU) will be signed between RIL and the Andhra Pradesh industries department in the presence of chief minister N Chandrababu Naidu in Vijayawada on Tuesday.
Incentives for Biofuel Projects The Andhra government has introduced incentives for biofuel projects under the state’s recently notified integrated clean energy policy. These include capital subsidy of 20% on fixed capital investment on CBG plants for five years as well as full reimbursement of state goods and services tax (SGST) and electricity duty for five years. Lokesh confirmed the investment plan to ET.
RIL did not respond to a request for comment till press time.
“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.”
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.”
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.”
