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What Reliance's Rs 1 Lakh Crore Biogas Plan and Its Projected 3 Lakh Jobs Mean for Andhra Pradesh Farmers and Plant Workers

Reliance plans Rs 1 lakh crore in Andhra Pradesh biogas plants and projects over 3 lakh jobs. See what is new, the land lease terms and what to do now.

Green compressed biogas tanks beside a tractor carrying grass across a farm field

Reliance Industries plans to invest Rs 1 lakh crore in Andhra Pradesh to set up compressed biogas (CBG) plants, and executive director Anant Ambani said the projects are expected to create more than 3 lakh jobs. That number is an expectation tied to a proposed investment, not a set of open vacancies and not a counted headcount like the clean energy totals in Why the 2026 Green Jobs Collapse Is a Myth and Where Clean Energy Hiring Is Headed. This guide looks at the plan from the side of farmers with spare or barren land, rural youth, plant operators, drivers and organic manure workers in Andhra Pradesh. For Metaintro readers, the useful detail sits in the primary pages beyond the speech, namely the Reliance release on the first of its 500 planned Andhra Pradesh CBG plants, the Andhra Pradesh Integrated Clean Energy Policy, 2024 and the new national GOBARdhan scheme. Here is what those pages show.

What Did Reliance Announce in Madanapalle?

The announcement came at the foundation stone-laying ceremony for the Rayalaseema Horticulture Hub and the Indian School of Agriculture in Madanapalle on October 2, with Andhra Pradesh Chief Minister N Chandrababu Naidu also at the unveiling of the foundation plaques. The proposed investment is expected to create more than 3 lakh jobs and generate nearly ₹60,000 crore in revenue for the state over the coming decades, Ambani said.

Farmers who ensure India's food security will now strengthen its energy security too, Ambani said, and he thanked the state government for the opportunity to invest Rs 1 lakh crore in the state.

CBG is made by processing agricultural residue, animal dung, food waste and other biomass into methane-rich gas. The fuel can replace conventional natural gas in transport, industrial and commercial uses.

The same event covered a proposed Rs 40,000-crore horticulture hub for Rayalaseema. Citing state government data, Ambani put the state's pipeline at 388 mega projects approved since June 2024, with investment commitments exceeding Rs 14 lakh crore and potential employment of nearly 11 lakh people.

Through Reliance’s green energy businesses, I see an opportunity to help our Anna Daatas become Urja Daatas, Reliance executive director Anant Ambani said on October 2, according to the Business Today story.

How Is This Different From the 500-Plant Deal Signed in 2024?

The state signed a memorandum of understanding with Reliance Industries to set up compressed biogas plants at a cost of Rs 65,000 crore in November 2024, in the presence of the Chief Minister at the Secretariat. At that signing, Chief Minister Naidu said the 500 compressed biogas plants would be set up in three years with each plant costing Rs 130 crore.

The MoU carried the potential to generate a revenue of Rs 57,650 crore to the state and employment to an estimated 2.5 lakh people, while the new plan is Rs 1 lakh crore, which Ambani said would create over 3 lakh jobs and bring nearly Rs 60,000 crore in revenue to the State over the next decades.

What did not come with the new figure matters too. No plant count, project timeline or plant capacity appears in the Business Today story, the Business Standard story, the Hans India story, the Free Press Journal story or the Bioenergy Business story on the October 2 speech. The plant count in Reliance's own release is the series of 500 projects involving a total capital outlay of Rs. 65,000 crores, dated April 2025. It is not clear from coverage of the speech whether the Rs 1 lakh crore replaces, extends or adds to that series.

Are the 3 Lakh Jobs Open Vacancies Yet?

No. The jobs are expected from a proposed investment, with no start date given in the Business Today story.

At the November 2024 MoU signing, the 500-plant project was put at direct or indirect employment to 2.5 lakh people, so that count was not limited to staff inside the plants. The 500-plant initiative is expected to create 250,000 jobs for rural youth, a figure from Reliance's April 2025 release. Neither total is split into plant jobs and farm jobs in the Deccan Chronicle MoU story or the Reliance release.

Reliance's construction of two biogas plant units in Dommeru village in East Godavari district, covering 36 acres, a project with an investment totalling Rs 256 crore that is also aimed at generating employment opportunities for 270 individuals was set out in an official announcement in February 2024. The local MLA put the Kapavaram unit at job opportunities for approximately 100 individuals. Those are estimates from one older project, not a rule for the new plants.

Where Will the Plants and the Grass Fields Be?

The first plant in the 500-plant series is at Kanigiri in Prakasam district, where Andhra Pradesh minister Nara Lokesh laid the foundation stone on April 02, 2025. It is the first of that series, not Reliance's first biogas project in the state, since the two East Godavari units had their foundation stone laid in a ceremony covered in February 2024. In April 2025, the Kanigiri plant was being developed with a capital investment of Rs. 139 crores.

The Kanigiri plant will use Napier grass grown on barren and waste lands to produce bio-gas. Around 500,000 acres of barren and waste lands in Prakasam, Anantapur, Chittoor, and Kadapa will be utilised for the integrated CBG hubs. At the 2024 signing, the state's power minister put the plants in eight districts.

Reliance's April 2025 target is that 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. The state's approval under its clean energy policy, made public in January 2025, gave the 500 plants a combined capacity of 11,000 metric tons.

Together, we will turn waste into green wealth, energy into empowerment, and land into livelihood, Reliance executive director P M S Prasad said in April 2025, according to the Reliance release.

What Do Farmers Get From the Napier Grass Model?

For the Kanigiri plant, Reliance describes two income streams for farmers, payment of lease revenues to the farmers, and additionally, a fixed price for the grass grown by farmers. No fixed grass price is printed in the April 2025 Reliance release, and whether the same terms will apply at the other plants is not spelled out there.

In April 2025, Reliance executive director P M S Prasad gave the estimate that the byproduct from these plants will yield one crore tonne of Fermented Organic Manure to support farmers with a reduction of chemical fertilisers consumption and will transform 15 lakh acres of barren land into fertile farmland. Prasad's one crore tonne figure sits apart from the estimate of 1.1 million metric tonnes of organic fertiliser annually in the release text.

Under the plan Ambani set out, Jio would collaborate with the Indian School of Agriculture to take training programmes to millions of farmers in Indian languages through virtual classrooms in villages, and that educated rural youth could become digitally enabled extension workers who help farmers apply that knowledge, a role that is also part of the plan in Papua New Guinea Cocoa Growers and Rural Youth Get a Ten-Year Plan to Process More Beans at Home, and that Reliance would share its bio-energy expertise from its R&D centre in Jamnagar.

What Does the State's Clean Energy Policy Say About Land and Feedstock?

The rules for CBG land sit in the Andhra Pradesh Integrated Clean Energy Policy, 2024, notified by G.O.Ms.No.37 of the Energy Department and valid for a period of 5 years from the date of issue. The state target for biofuels includes Bio CNG/CBG of 10,000 TPD.

For the plant owner, a CBG plant set up during the policy operative period can get a capital subsidy of 20% on Fixed Capital Investment, subject to a maximum of INR 1 Cr for each TPD of capacity, paid over a period of 5 years post COD, for plants of at least 10 TPD, and only for the first 1,000 plants or up to 10,000 TPD capacity, whichever is achieved first. The state's approval of the Reliance plants, made public in January 2025, offered to lease available revenue lands at ₹15,000 an acre each year, with a 5% biennial escalation.

What Does the New National GOBARdhan Scheme Add?

The Union Cabinet approved GOBARdhan, the National Circular Bioenergy Scheme, with a total outlay of Rs.23,731 crore, to be implemented from FY 2026-27 to FY 2035-36. Petroleum and Natural Gas Minister Hardeep Singh Puri launched GOBARdhan earlier in the same week as the Madanapalle speech.

The SATAT initiative, launched in October 2018, envisaged 5000 CBG plants producing 15 Million Metric Ton of CBG a year by 2023-24, and 38 CBG/biogas plants had been commissioned as on 31st October 2022. By the August 2026 Cabinet release, earlier schemes had enabled the commissioning of over 200 CBG plants.

The Ministry of New and Renewable Energy notified the National Bioenergy Programme for a period 01.04.2021 to 31.03.2026, with a biogas component, and bioenergy can also create local jobs, and business opportunities.

What Kind of Work Does a Biogas Plant Create?

A CBG plant generates opportunities in feedstock supply, transportation, plant operations and organic manure production.

Other CBG plants are planned too. In a government order covered in March 2026, Andhra Pradesh sanctioned around 60 crore rupees to establish five CBG plants in urban local bodies, with new plants in Rajamahendravaram, Nellore, Guntur and Ongole and an upgrade of an existing facility in Vijayawada. Those plants will be implemented with technical support from the CSIR-Indian Institute of Chemical Technology, Hyderabad, and Swachh Andhra Corporation will serve as the nodal agency.

How Can You Avoid Fake Reliance Job Offers?

Certain fraudsters have been approaching innocent job seekers and promising them lucrative job offers in Reliance group companies, then asking for payments to a designated bank account.

What This Means for Job Seekers, and What Should You Do Next?

Our take is that the new jobs figure comes with little detail so far. The jobs are projected, the plant count for the new money is missing from the Business Today story on the speech, and Naidu's November 2024 timeline was that the 500 plants would be set up in three years. National targets have also run ahead of building before, since SATAT envisaged 5000 CBG plants by 2023-24 while over 200 CBG plants had been commissioned under SATAT and the related schemes by August 2026. The firm parts a farmer or worker can plan around are the land and feedstock rules in the state's clean energy policy and the national price and subsidy set out in the GOBARdhan Cabinet release.

Here is what we would do:

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People Also Asked

Q: How many jobs will Reliance's biogas plan create in Andhra Pradesh?

A: Ambani said the Rs 1 lakh crore plants would create over 3 lakh jobs, but that is a projection, not a count of open vacancies.

Q: Where are Reliance's compressed biogas plants in Andhra Pradesh?

A: The first plant in the 500-plant series is at Kanigiri in Prakasam district, and around 500,000 acres of barren and waste land in Prakasam, Anantapur, Chittoor, and Kadapa will be utilised for the CBG hubs.

Q: How much land lease do biofuel projects pay in Andhra Pradesh?

A: For biofuel projects on revenue or government land, the lease paid to the government under the state policy is INR 15,000/acre/year with 5% escalation for every 2 years. The policy text is inconsistent on private land, since under its biofuel incentives, revenue/government/private/patta land is also listed at INR 15,000 an acre a year with 5% escalation for every 2 years.

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