Reliance mulls Rs 1 lakh crore investment in Andhra Pradesh’s CBG sector

Reliance Industries Ltd (RIL) has announced plans to invest Rs 1 lakh crore in Andhra Pradesh to establish compressed biogas (CBG) projects, with the proposed investment expected to create more than 3 lakh jobs and generate Rs 60,000 crore in revenue for the state over the coming decades.

RIL Executive Director Anant Ambani announced the investment while speaking at the foundation stone-laying ceremony of the Rayalaseema Horticulture Hub and Indian School of Agriculture at Madanapalle.

Ambani said farmers, who play a critical role in ensuring India’s food security, can also contribute to the country’s energy security by supplying feedstock for clean-energy projects.

“Reliance Industries is grateful to the Government of Andhra Pradesh for the opportunity to invest Rs 1 trillion in the state to set up compressed biogas plants,” he said.

He credited the state government’s “Speed of Doing Business” approach for creating a strong investment pipeline. Since June 2024, Andhra Pradesh has approved 388 mega projects with investment commitments of more than Rs 14 lakh crore and the potential to generate nearly 11 lakh jobs, he said.

Ambani said a significant share of these investments is expected to flow into Rayalaseema, adding that the clean-energy projects of Reliance Industries would support the state’s “Swarna Andhra 2047” vision and the national goal of building a developed India.

The proposed investment comes as the Centre is stepping up efforts to expand India’s CBG industry. Petroleum and Natural Gas Minister Hardeep Singh Puri recently launched the GOBARdhan scheme, aimed at accelerating the development of CBG projects using agricultural residues, cattle dung, municipal waste and other organic feedstocks.

Approved with an outlay of Rs 23,731 crore, the scheme provides a 10-year framework from 2026-27 to 2035-36. It targets nearly a ten-fold increase in domestic CBG production to around 5 million standard cubic metres per day (mscmd).

Two years ago, Reliance Industries announced plans to invest Rs 65,000 crore in Andhra Pradesh CBG projects. Last year, the state government gave a go-ahead to several major green & clean energy projects under its newly created AP Integrated Clean Energy Policy-2024 (ICEP) which included establishment of 500 Compressed Bio-Gas (CBG) plants across various districts by Reliance.

Subsequently, Mukesh Ambani also announced a massive Rs 75,000 crore investment in the North Eastern states over the next five years that would include the construction of 350 integrated CBG plants across the region.