Reliance Industries has signed a significant agreement with the Andhra Pradesh government to invest ₹65,000 crore in establishing 500 compressed biogas (CBG) plants across the state over the next three years. The deal was formalized in Amaravati in the presence of Chief Minister N Chandrababu Naidu, Energy Minister Gottipati Ravi Kumar, and senior Reliance Group officials. “We are pleased to finalize this agreement with Reliance, which includes setting up 500 CBG plants over the coming years,” stated Naidu in a press release from the Chief Minister’s Office.
Economic and Environmental Impact
Each CBG plant will require an investment of ₹130 crore, creating around 2.5 lakh jobs through direct and indirect employment. Over 25 years, this initiative is expected to yield approximately ₹57,650 crore in financial benefits through state tax revenues, employment-related taxes, and electricity duty. Farmers cultivating energy crops, such as Napier grass, will be able to generate up to ₹30,000 per acre annually.
The production capacity, estimated at 39 lakh tonnes of CBG annually from 500 plants, is projected to support the state’s GDP by fostering industrial growth. This initiative is expected to power 9.38 lakh light commercial vehicles daily with renewable fuel, reducing dependence on fossil fuels. The state government highlighted Andhra Pradesh’s favorable conditions for renewable energy, including abundant solar and wind resources and supportive policies, alongside its new Integrated Clean Energy Policy, targeting CBG production of 10,000 tonnes per day.
Tata Power also recently committed ₹40,000 crore in the state’s solar sector, further cementing Andhra Pradesh’s position as a renewable energy hub. To encourage biofuel projects, the state is offering a 20% capital subsidy on fixed capital investments for CBG plants with a minimum capacity of 10 TPD, applicable to the first 1,000 plants.
Reliance Industries Limited (RIL) is one of India’s largest and most diversified conglomerates, with business interests spanning energy, petrochemicals, natural gas, retail, telecommunications, and digital services. Founded by Dhirubhai Ambani in 1973, RIL has grown to become a powerhouse under the leadership of Mukesh Ambani, playing a pivotal role in India’s economic landscape.
In recent years, Reliance Industries has been investing heavily in sustainable energy and digital transformation, with ambitious plans in green hydrogen, solar energy, and biogas projects, such as the establishment of compressed biogas plants in partnership with various state governments. Reliance Jio, its telecom arm, has disrupted the Indian telecom industry by making affordable, high-speed data widely accessible, propelling India’s digital infrastructure forward.
The company’s retail arm, Reliance Retail, is also a market leader, offering a wide array of consumer goods and services. RIL’s continued investments in technology, sustainability, and strategic partnerships are positioning it to play a critical role in India’s transition to a greener, digital economy.
