MoU With RIL To Put AP In Driver's Seat Of Clean Fuel Movement: CII-AP

The investment strengthens Andhra Pradesh’s role as a green energy hub, serving as a model for other states aiming to convert waste into valuable fuel, reduce carbon footprints, and foster rural economic empowerment - Dr V Murali Krishna, Chairman, CII-AP

Visakhapatnam: Confederation of Indian Industry (CII)-Andhra Pradesh Chairman Dr V Murali Krishna has expressed his satisfaction over signing of a MoU with the Reliance Industries Limited (RIL), a month after introducing the State's clean fuel policy as a big step forward to convert AP into a major global hub for generating green energy.

Murali Krishna, who is into cancer research and care, said the initiative, which has drawn high appreciation from various sectors, will strengthen Andhra Pradesh’s position in the renewable energy sector, the Rs 65,000 crore MoU with Reliance to establish 500 compressed biogas (CBG) plants.

He told Bizz Buzz that it marks a transformative step forward and is expected to generate 5 million tonnes of CBG annually. The project could place Andhra Pradesh as a leading biogas producer, surpassing other states like Maharashtra and Uttar Pradesh.

With around 62 million metric tonnes of solid waste produced annually across India, Andhra Pradesh’s focus on waste-to-fuel initiatives aligns perfectly with the National Bioenergy Programme, which supports bioenergy and waste utilization to further green energy targets. This development will not only address waste but will also provide farmers with new revenue channels for agricultural byproducts, enhancing rural economies by supporting 250,000 new jobs statewide in operations, logistics, and plant management.

He said the investment strengthens Andhra Pradesh’s role as a green energy hub, serving as a model for other states aiming to convert waste into valuable fuel, reduce carbon footprints, and foster rural economic empowerment. The state’s CBG expansion is likely to attract further green investment, supporting sustainable development while reinforcing India's commitments under the Paris Agreement.

Andhra Pradesh Integrated Clean Energy (ICE) Policy-2024, which was approved by the State government last month, has set a target to produce 160 GW of renewable energy with an investment of $118.95 billion in next five years. The policy envisages making Visakhapatnam and other locations as green hydrogen hubs and by encouraging industrial and commercial consumption under open access route. A slew of incentives including tax exemptions and concessions in land allotment have been promised in the policy.

In a posting on X, Chief Minister N Chandrababu Naidu said: "Out of Reliance's national target of 2000 CBG plants, 500 state-of-the-art CBG plants will be built throughout Andhra Pradesh over the next three years. This will make our State a frontrunner in clean energy and sustainable development. With Reliance's commitment to enhancing lives and livelihoods in AP, this partnership will also drive growth across multiple sectors."