The Andhra Pradesh government and Reliance Group on Tuesday signed a deal worth ₹65,000 crore to establish 500 compressed biogas (CBG) plants in the state over the next three years.

The agreement was signed in the presence of Chief Minister N Chandrababu Naidu, Power Minister Gottipati Ravi Kumar and senior officials of the Reliance Group at the state secretariat in Amaravati.

“Very happy to sign an MoU with Reliance. Highlights of the deal include setting up 500 CBG plants over the next three years,” Naidu said in a statement from the Chief Minister’s Office (CMO).

According to the chief minister, the conglomerate will invest ₹130 crore per CBG plant, thereby creating around 2.5 lakh jobs.

Naidu also highlighted that the state stands to earn ₹57,000 crore over the next 25 years through SGST collection, electricity taxes and other revenue streams arising from this initiative.