As part of India’s ambitious goal to achieve net-zero carbon emissions by 2035, significant efforts are underway to develop alternative energy sources. The Andhra Pradesh government, led by Chief Minister Chandrababu Naidu, is accelerating its transition toward sustainable energy, according to an official statement.
In a major step toward this vision, State Minister for Human Resources, IT, and Electronics, Nara Lokesh, will lay the foundation stone for the first Reliance Compressed Bio Gas (CBG) plant in Kanigiri, Prakasam district. This initiative is part of a broader Memorandum of Understanding (MoU) between Reliance and the Andhra Pradesh government to establish 500 CBG plants with an investment of ₹65,000 crore.
The groundbreaking ceremony will be attended by Minister of Energy Gottipati Ravi Kumar, other state ministers, Reliance Industries Director PMS Prasad, RIL Mentor PVL Madhav Rao, and Reliance Bio Energy Business CEO Harindra K. Tripathi, marking a significant milestone in India’s biofuel sector.
Transformative Impact of the CBG Initiative
With a planned investment of ₹65,000 crore over the next five years, the initiative is expected to generate approximately 2.5 lakh direct and indirect job opportunities. Additionally, the 500 CBG plants will bring 5 lakh acres of barren land into productive use. Each plant, requiring around 1,000 acres, will be set up at an estimated cost of ₹130 crore—₹105 crore for plant infrastructure and ₹25 crore for land rejuvenation.
The initiative aims to produce 40 million metric tons of CBG annually. Each plant will contribute:
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7,800 metric tons of compressed bio-gas
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22,000 metric tons of high-quality fermented manure, capable of fertilizing 3,000 acres of land
Reliance is developing four integrated CBG hubs across India, with one strategically located in Prakasam district. These hubs will oversee the establishment of CBG plants in Andhra Pradesh’s Prakasam, Anantapur, Chittoor, and Kadapa districts. The goal is to convert 3-4 percent of barren land into renewable energy plantations through the 500 integrated plants.
Driving Sustainability and Economic Growth
Reliance plans to cultivate hybrid Napier grass and other energy crops on 5.5 lakh acres of barren land in Andhra Pradesh. The green fertilizer produced will help restore soil fertility, transforming non-productive land into fertile farmland, thereby boosting rural employment and economic activity.
India has approximately 160 million acres of barren land, with climate change contributing to its expansion each year. Around 50 percent of this land is concentrated in Rajasthan, Madhya Pradesh, Maharashtra, Andhra Pradesh, and Gujarat. By establishing these CBG plants, Reliance aims to drive large-scale industrialization and significantly contribute to the country’s GDP.
Once fully operational, these CBG plants will have the capacity to fuel 9.75 lakh Light Commercial Vehicles (LCVs) daily, meeting 5 percent of India’s fuel demand. Additionally, they will produce 110 million metric tons of organic fertilizer, enhancing soil fertility across 15 lakh acres of land.
This large-scale investment underscores India’s commitment to renewable energy and sustainability, positioning Andhra Pradesh as a leader in biofuel production while fostering economic growth and environmental conservation.