Reliance to invest Rs 65,000 crore to build 500 biogas plants in Andhra Pradesh

Reliance Industries is set to take the biogas development in India to the next level altogether. India’s energy conglomerate is mulling to invest Rs 65,000 crore in the state of Andhra Pradesh in biogas project. This also marks the largest investment by RIL made outside Gujarat to support its clean energy goals.

Under the leadership of Mukesh Ambani, Reliance Industries plans to establish 500 compressed biogas (CBG) plants across Andhra Pradesh over the next five years.

According to reports, each biogas plant will require an investment of Rs 130 crore and will be developed on wastelands. The project is expected to generate direct and indirect employment opportunities for about 2.5 lakh people, as per state estimates.

The plan was finalized following discussions between Anant Ambani, who oversees RIL’s clean energy projects, and Andhra Pradesh IT Minister Nara Lokesh. The upcoming agreement between RIL and the Andhra Pradesh industries department will be signed in the presence of Chief Minister Chandrababu Naidu.

In the beginning of this year, Reliance Industries announced its plan to establish over 50 biogas plants within the next two years investing more than Rs 5,000 Crore in India. Recently, the Assam state cabinet said that it approved an MoU that will be signed with Reliance to advance the state’s transition to green energy.

The new initiative follows the Andhra Pradesh government’s recent announcement of incentives for biofuel projects under its new integrated clean energy policy under which an incentives is included worth a 20% capital subsidy on fixed capital investments for compressed biogas plants over five years. There is also full reimbursement of state GST and electricity duty during the same period.

Minister Lokesh noted that the integrated clean energy policy was designed to attract investors and create jobs, adding that the state is eager to welcome more investments from Reliance. He highlighted that the entire process—from initial outreach to MoU signing—was completed within 30 days, calling the anticipated job creation a “game-changer” for the state’s youth.