Clean Energy Policy Unlocks AP Biz Potential: Experts

The investment is an environment-friendly initiative by the State govt and will lead to generating wealth from solid waste, cow dung and sugar molasses. It will be useful for increasing agriculture yield-- Sagi Kashi Viswanatha Raju, Independent Director, SAIL, tells Bizz Buzz

CBG projects are a viable and tenable alternative to coal, particularly when small to medium-scale clean energy generation is the goal - M Muralidharan, ED, Kakinada Gateway Port Ltd

Visakhapatnam: The decision of Reliance Industries Ltd (RIL) to invest Rs65,000 crore by setting up 500 compressed biogas (CBG) plants across Andhra Pradesh in the next four to five years is the first largest investment project received after the TDP-led NDA coalition unveiled its clean energy policy sometime ago.

After signing MoU with the top officials of RIL at Amaravati, Chief Minister N Chandrababu Naidu said AP is on a roll in the pursuit of investments. The CM opined that the new industrial policies introduced by the State Government are yielding encouraging results. Each CBG will involve an investment of around Rs130 crore.

A senior official told Bizz Buzz that the MoU will provide employment opportunities to 2.5 lakh and generate a revenue of Rs57,650 crore to the government exchequer. Naidu described the agreement as the right step to prove that there is focus on speed of doing business after the NDA formed the government in June 2024.

The signing of MoU for the mega project has drawn appreciation from various industrial sectors. Independent Director of Steel Authority of India Ltd (SAIL) Sagi Kashi Viswanatha Raju told Bizz Buzz that the investment is an environment-friendly initiative by the State Government and will lead to generating wealth from solid waste, cow dung and sugar molasses. “It will be useful for use to increase agriculture yield,” he remarked.

Executive Director of Kakinada Gateway Port Limited (KGPL) M. Muralidharan said:“CBG projects are a viable and tenable alternative to coal, particularly when small to medium-scale clean energy generation is the goal. They work well within green energy policies and can help reduce emissions while enhancing energy security. However, large-scale replacement of coal may require complementary energy sources and solutions to address feedstock supply, land use issues, and lower energy densities. With supportive policies, investment incentives, and advances in technology, CBG plants can become a valuable component of a sustainable energy portfolio.”

A senior official in the logistics sector, while seeking anonymity, welcomed the initiative.

He said:“It’s a bold initiative. It will generate jobs and gas if successful.” He felt that the project envisaged may not require such a massive investment as suggested. “It’s far-fetched but in the right direction,” he observed.

AP IT, Electronics and HRD Minister Nara Lokesh termed the MoU as historic since RIL has come forward to sign the MoU in just 30 days of his meeting Chairman of Reliance Mukesh Ambani and head of Reliance Energy Anant Ambani in Mumbai.

He said “this will certainly invigorate the policies of speed of doing business that are being implemented in the State, and hoped that the projects to be set up in AP will break the fast way the biofuel projects were established at Barabanki in Uttar Pradesh.

The Andhra Pradesh Integrated Clean Energy (ICE) Policy-2024, which has been unveiled some time ago, aims to transform the State as a global clean energy hub by adding 160GW of renewable energy with an investment of $118.95 billion in next five years.Green hydrogen production and its derivatives have been identified as the thrust areas with industrial and commercial consumption under the open access route. It allows the developers to take government or private land under lease for 30 years. This is extendable for another 33 years for pumped storage projects (PSP) and mini hydro projects. The policy promises land allotment under AP Land Allotment Policy-2012.The government promised to give deemed non-agricultural status and waiver of land conversion charges for clean energy projects. Land allotment is promised at Rs31,000 per acre per year with five per cent escalation once in two years.