RIL starts 1st CBG plant in AP, eyes Rs 65K Cr investment for 500 bio-gas hubs

Andhra Pradesh IT & Electronics Minister Nara Lokesh has laid the foundation stone for the first Reliance Compressed Bio-Gas (CBG) plant at Kanigiri in Prakasam district. The project involves a capital investment of Rs 139 crore and is the first of 500 planned projects with a total investment of Rs 65,000 crore in the state.

The plant will use Napier grass grown on barren and waste lands to produce bio-gas. The company, in a statement, said farmers will receive lease revenues and a fixed price for the grass they grow.

Reliance says it plans to set up integrated CBG hubs across Andhra Pradesh, utilising 500,000 acres of barren land in Prakasam, Anantapur, Chittoor, and Kadapa. "Once fully operational, these plants will produce 40 lakh tonnes of CBG and 1.1 million metric tonnes of organic fertiliser annually, creating 250,000 jobs."

Reliance executive director PMS Prasad says the project aims to uplift communities, boost local economies, and support Andhra Pradesh’s clean energy goals. The byproduct will provide organic manure, reducing chemical fertiliser use and improving soil fertility.

Lokesh says the state government provided support to enable the project and expects Reliance to develop 500 such projects in Andhra Pradesh.

The event was attended by Energy Minister Gottipati Ravi Kumar, Chief Secretary Vijayanand, Prakasam District Collector Tamim Ansariya, Transco JMD Keerthi Chekuri, MLAs, MLCs, and Reliance officials.

Reliance Industries reported consolidated revenue of Rs 10,00,122 crore, cash profit of Rs 1,41,969 crore, and profit of Rs 79,020 crore for the year ended March 31, 2024.