Reliance Industries CBG Investment Reaches Rs 1 Trillion

Reliance Industries CBG investment in Andhra Pradesh is set to reach Rs 1 trillion as the company plans to establish compressed biogas projects across the state. Reliance Industries Ltd (RIL) Executive Director Anant Ambani announced the investment while speaking at the foundation stone-laying ceremony of the Rayalaseema Horticulture Hub and Indian School of Agriculture in Madanapalle. The planned projects are expected to create more than 3 lakh jobs and generate Rs 60,000 crore in revenue for Andhra Pradesh over the next few decades. Ambani said the initiative would also connect agricultural activity with India's energy security goals by enabling farmers to contribute to domestic energy production.

Reliance Industries Plans Large-Scale CBG Expansion

Ambani said Reliance Industries Ltd was grateful to the Government of Andhra Pradesh for the opportunity to invest Rs 1 trillion in the state for compressed biogas plants. He described the projects as part of RIL's clean-energy activities, which include green energy and advanced manufacturing. The investment is also being aligned with Andhra Pradesh's "Swarna Andhra 2047" vision and the broader Viksit Bharat objective. The company sees the CBG initiative as a way to support greater energy self-reliance while creating an additional economic role for farmers involved in supplying feedstock for bioenergy production.

Investment Pipeline Expands Across Rayalaseema

The CBG investment is part of a broader investment pipeline developing under Andhra Pradesh's "Speed of Doing Business" initiative. Ambani said that since June 2024, the state has approved 388 mega projects representing investment commitments of more than Rs 14 trillion, with the potential to create nearly 11 lakh jobs. Around one-third of those projects are headed to the Rayalaseema region. RIL's participation through clean-energy projects therefore forms part of a wider industrial and investment expansion in the state. The company's latest commitment adds further scale to its existing activities in bioenergy and advanced manufacturing across Andhra Pradesh.

GOBARdhan Provides Policy Support for CBG

The announcement follows the Union government's launch of the GOBARdhan scheme, which is intended to accelerate development of India's compressed biogas sector. Petroleum and Natural Gas Minister Hardeep Singh Puri launched the central sector scheme earlier this week after the Union Cabinet approved it in August. GOBARdhan has an outlay of Rs 23,731 crore and will operate for 10 years from 2026-27 to 2035-36. The framework includes measures covering assured offtake, stable pricing, capital assistance, pipeline connectivity, and access to finance. These measures are designed to provide greater certainty for investors and lenders considering long-term CBG projects.

India Targets Major Increase in Domestic CBG Production

The government aims to increase domestic CBG production in India nearly tenfold to around 5 million standard cubic meters per day under the GOBARdhan scheme. The longer-term policy framework is intended to improve investment visibility for companies developing production capacity and related infrastructure. By addressing offtake, pricing, financing, and pipeline connectivity, the scheme is designed to reduce some of the uncertainties associated with expanding the CBG industry. For RIL, the policy environment comes as the company is already developing a large CBG footprint, creating a direct connection between its planned investment in Andhra Pradesh and the government's broader effort to expand domestic bioenergy production.

RIL Has Already Started Building CBG Capacity

RIL had already begun expanding its CBG operations in Andhra Pradesh before announcing the larger Rs 1 trillion commitment. In April 2025, the company broke ground on the first of a planned 500 CBG plants in the state under an earlier announced investment program worth Rs 65,000 crore. The first project, located at Kanigiri in Prakasam district, involved a capital investment of Rs 139 crore. RIL said the plants would use Napier grass cultivated on barren and wastelands as feedstock. The approach links the development of renewable fuel capacity with the productive use of land that is not being utilized for conventional agricultural purposes.

Earlier Program Targeted 500 CBG Plants

The earlier CBG program envisaged using around 5 lakh acres of barren and wasteland across Prakasam, Anantapur, Chittoor, and Kadapa. Once operational, the projects were projected to produce around 40 lakh tonnes of CBG and 1.1 million metric tonnes of organic fertilizer each year. RIL had also estimated that the program could create about 2.5 lakh rural jobs. The scale of the earlier plan provides context for the company's latest investment announcement, which expands its stated commitment to CBG development in Andhra Pradesh. The projects are intended to combine energy production, agricultural feedstock utilization, employment generation, and fertilizer output within a broader bioenergy model.

RIL Expands Its Broader Bioenergy Strategy

RIL's wider bioenergy program includes plans to develop more than 500 CBG plants by 2030. The company has also said it is developing integrated energy hubs that combine CBG plants with agriphotovoltaics and battery energy storage systems. In parallel, RIL is expanding its CBG operations across southern India. This approach places compressed biogas within a broader clean-energy portfolio rather than treating individual plants as standalone projects. The combination of CBG production with other energy technologies could allow the company to integrate agricultural resources, renewable power generation, and energy storage into larger operating hubs as its bioenergy footprint grows.

Industry Impact & Outlook

RIL's expanded CBG commitment could strengthen Andhra Pradesh's position in India's growing bioenergy industry while creating a large pipeline of projects tied to agricultural feedstock, rural employment, and clean-fuel production. The timing is significant because the GOBARdhan framework is designed to provide greater policy and financing certainty for CBG developers, potentially supporting investment decisions across the sector. For RIL, the next stage will depend on execution of the planned plants, development of supporting infrastructure, and continued availability of suitable feedstock. The combination of company investment and government policy support could make Andhra Pradesh an important base for scaling CBG capacity and related rural energy activity.

Frequently Asked Questions

What is the planned Reliance Industries CBG investment in Andhra Pradesh?
Reliance Industries plans to invest Rs 1 trillion in Andhra Pradesh to establish compressed biogas projects, with the initiative expected to create more than 3 lakh jobs and generate Rs 60,000 crore in revenue for the state over the next few decades. The investment builds on RIL's existing CBG development program in the state, including plans for more than 500 plants and the use of Napier grass grown on barren and wastelands as feedstock. The projects are also aligned with India's broader effort to expand domestic bioenergy production and strengthen energy self-reliance.