RIL Plans Rs 1 Trillion Investment in Andhra Pradesh for CBG Projects

Reliance Industries Ltd (RIL) plans to invest Rs 1 trillion in Andhra Pradesh to set up compressed biogas (CBG) projects, RIL Executive Director Anant Ambani said on Friday.

Speaking at the foundation stone-laying ceremony of the Rayalaseema Horticulture Hub and Indian School of Agriculture in Madanapalle, Ambani said the projects are expected to create more than 3 lakh jobs and generate Rs 60,000 crore in revenue for the state over the next few decades.

Ambani said farmers, who play a key role in ensuring the country's food security, would also contribute to its energy security through the CBG initiative. He said the investment would support India's efforts towards greater energy self-reliance.

"That is why 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," Ambani said.

He also highlighted the investment pipeline being created in Andhra Pradesh under the state government's "Speed of Doing Business" initiative. Since June 2024, the state has approved 388 mega projects involving investment commitments of more than Rs 14 trillion, with the potential to create nearly 11 lakh jobs, Ambani said. Around a third of these projects are headed to the Rayalaseema region.

Ambani said RIL was participating in the state's growth through its clean-energy projects, spanning green energy and advanced manufacturing. He linked the investments to Andhra Pradesh's "Swarna Andhra 2047" vision and the broader Viksit Bharat objective.

The announcement comes shortly after the Union government launched the GOBARdhan scheme to accelerate the development of the CBG sector. Petroleum and Natural Gas Minister Hardeep Singh Puri launched the central sector scheme earlier this week.

Approved by the Union Cabinet in August, GOBARdhan has an outlay of Rs 23,731 crore and will operate over a 10-year period from 2026-27 to 2035-36. The scheme seeks to provide a long-term policy framework for the CBG industry, with measures covering assured offtake, stable pricing, capital assistance, pipeline connectivity and access to finance.

The government aims to increase India's domestic CBG production nearly 10-fold to around 5 million standard cubic metres per day (mscmd) under the scheme. The longer-term framework is intended to provide greater certainty to investors and lenders and encourage private investment in the sector.

RIL has already been expanding its CBG footprint in Andhra Pradesh. In April 2025, the company broke ground on the first of a planned 500 CBG plants in the state, with an earlier announced investment of Rs 65,000 crore. The first project, at Kanigiri in Prakasam district, involved a capital investment of Rs 139 crore. RIL said the plants would use Napier grass grown on barren and wastelands as feedstock.

The earlier programme envisaged using around 5 lakh acres of barren and wasteland across Prakasam, Anantapur, Chittoor and Kadapa. Once operational, the projects were projected to produce around 40 lakh tonnes of CBG and 1.1 million metric tonnes of organic fertiliser annually, while creating about 2.5 lakh rural jobs.

RIL's broader bioenergy programme includes the development of more than 500 CBG plants by 2030. The company has said it is developing integrated energy hubs that combine CBG plants with agriphotovoltaics and battery energy storage systems, while also expanding its CBG operations across southern India.