Each plant will involve an investment of ₹130 crore. The project is expected to generate 250,000 direct and indirect jobs.
Reliance Industries has entered into a Memorandum of Understanding (MoU) with the Andhra Pradesh Government in Amaravati on Tuesday. The AP Energy department and Reliance Industries had signed and exchanged the MoU copies in the presence of Chief Minister N Chandrababu Naidu.
The state government estimates that this initiative will generate ₹57,650 crore in revenue over 25 years through SGST collection, electricity duty, and taxes.
The Andhra Pradesh government has introduced incentives for biofuel projects, including a 20% capital subsidy on fixed capital investment and full reimbursement of state goods and services tax (SGST) and electricity duty for five year.
This initiative aligns with the state's integrated clean energy policy and aims to rejuvenate wastelands while providing significant economic benefits.
The Reliance Industries biogas venture in Andhra Pradesh offers several benefits for farmers too.
The project will create 250,000 direct and indirect jobs, providing employment opportunities for local communities.
Farmers will receive training in the cultivation of energy crops (Napier Crops) , helping them adopt new agricultural practices and improve their productivity.
With 500 CBG plants in the state, farmers will be able to earn around ₹30,000 per acre per annum by cultivating energy crops (Napier grass). The production of around 39 lakh tonnes of CBG per annum (7,800 tonnes per plant) will give a fillip to the State GDP by aiding industrial growth. CBG produced from 500 plants can provide renewable fuel to 9.38 lakh light commercial vehicles daily replacing fossil fuel with green energy, said a government release.
Advertisements