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Reliance Breaks Ground on First of 500 CBG Plants in Andhra Pradesh, Plans INR 65,000 Cr Investment

Reliance has broken ground on its first CBG plant in Kanigiri, Prakasam district, with an investment of INR 139 crore with a planned capacity to produce 40 lakh tonnes of CBG and 11 lakh metric tonnes of organic fertiliser annually. It is the first in a series of 500 projects in Andhra Pradesh involving a total capital outlay of INR 65,000 crore.

April 05, 2025. By Mrinmoy Dey

Andhra Pradesh IT and Electronics Minister Nara Lokesh has laid the foundation stone of the first Reliance Compressed Bio-Gas (CBG) plant at Kanigiri in Prakasam district in Andhra Pradesh.

The project is being developed with a capital investment of INR 139 crores and is the first in a series of 500 projects involving a total capital outlay of INR 65,000 crore for AP. The plant will be developed with innovative technology and utilise Napier grass that would be developed on barren and waste lands to produce bio-gas. The project will result in significant livelihood to the rural economy through payment of lease revenues to the farmers, and additionally, a fixed price for the grass grown by farmers, the company said in a statement.

It further added that Reliance has embarked on a bold journey to establish integrated CBG hubs across Andhra Pradesh. Around 500,000 acres of barren and waste lands in Prakasam, Anantapur, Chittoor, and Kadapa will be utilised for this purpose. Once all the plants are fully operational, they will produce 40 lakh tonne of green, clean CBG and 1.1 million metric tonnes of organic fertiliser annually. This initiative is expected to create 250,000 jobs for rural youth.

Reliance Executive Director PMS Prasad, who was present during the ground-breaking event, said, “We see this project as more than energy production. It will uplift communities and boost local economies. And, it will drive Andhra Pradesh's clean energy ambitions forward. Our initiative will equip our ‘Anna Daatas’ with the tools and technology they need to become ‘Urja Daatas’. Additionally, the byproduct from these plants will yield one crore tonne of fermented organic manure to support farmers with a reduction of chemical fertilisers consumption. This will transform 15 lakh acres of barren land into fertile farmland, boosting farmer incomes.”

He further added, “We – the state government and Reliance, share a united vision. A vision where Andhra Pradesh shines as a leading state of India. This bioenergy project is a major step in that direction, and we are committed to making it a reality. Together, we will turn waste into green wealth, energy into empowerment, and land into livelihood.”

Speaking on the occasion, Nara Lokesh said, “I am delighted that we have been able to provide requisite support in record time and enable Reliance to break ground on this transformational CBG project at Prakasam district. This is the first of many and we aim that Reliance would develop 500 such projects across Andhra Pradesh with a total investment of INR 65,000 crore. Reliance Industries has been one of AP’s largest and most trusted investors over the past few decades and we are excited to extend this partnership into the CBG space.”

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Andhra Pradesh IT and Electronics Minister

Compressed Biogas

CBG plant in Andhra Pradesh

Integrated CBG hubs in Andhra Pradesh