VIJAYAWADA: The State government signed a Memorandum of Understanding (MoU) with Reliance Industries for the establishment of 500 compressed biogas (CBG) plants with a total investment of around Rs 65,000 crore (Rs 130 crore per plant).
All the available wastelands will be utilised for the project. The deal was signed in the presence of Chief Minister N Chandrababu Naidu at the State Secretariat on Tuesday.
The plants would create direct and indirect employment for around 2.50 lakh people with estimated financial benefit of around Rs 57,650 crore over a period of 25 years through State Goods and Service Tax (SGST) collection, electricity duty and taxes on employment.
The production of around 39 lakh MT (Metric Tonne) of CBG per annum (7,800 MT per plant) will give a fillip to the State GDP by aiding industrial growth.
Terming the MoU a landmark, Naidu in a post on X (formerly Twitter) said, “Out of Reliance’s national target of 2,000 CBG plants, 500 state-of-the-art CBG plants will be built throughout Andhra Pradesh over the next three years.”
Clean Energy Policy aims to attract investments to tune of Rs 10L crore
“This will make our State a frontrunner in clean energy. With Reliance’s commitment to enhancing lives and livelihoods in AP, this partnership will also drive growth across multiple sectors. By attracting such transformative investments, our Integrated Clean Energy Policy is proving instrumental in positioning our State as a preferred destination for industries - a swing in AP’s favour,” the CM added.
Stating that AP would be known as an ideal destination for ‘Speed of Doing Business’, he observed that the attractive policies rolled out by the State government has resulted in investor confidence.
Appointing APTRANSCO (AP Transmission Corporation) Joint Managing Director Keerthi Chekuri as the escort officer for the project, Naidu assured complete support to the company for the quick completion of the project.
In response of Naidu’s suggestion to produce gas through solid wastes, which would be provided by the State government, representatives of Reliance Energy said they will construct the plants viable for production through municipal solid waste.
“We have rolled out Clean Energy Policy - 2024 with a target to attract investments to the tune of Rs 10 lakh crore. We are also mulling over establishing a clean energy university. Besides solar and wind, we are looking at pumped storage energy,” he explained.
Naidu lauded Ministers Gottipati Ravi Kumar (Energy) and TG Bharat (Industry) for expeditiously taking decisions regarding the MoU. Terming the development historic, IT Minister Nara Lokesh highlighted that the MoU was signed in just 30 days of his meeting with Reliance Industries Chairman Mukesh Ambani and Reliance Energy Director Anant Ambani in Mumbai.
“This will invigorate the policies of Speed of Doing Business that are being implemented in the State,” Lokesh said and pointed out that till now only the biofuel project at Barabanki in Uttar Pradesh has been implemented so fast. “The project in AP will break this record,” he said exuding confidence.
He announced that the foundation for the maiden biofuel project in the State will be laid on December 28 at Kanigiri in Prakasam district. Reliance Energy’s representative in the State, Prasad said the first project will be completed in just one year.