Reliance Consumer Products Limited is making a major move in Andhra Pradesh. The company will invest a massive Rs 1,622 crore to build a new beverage factory in Kurnool district. This significant project has just received the green light from the state government.
The state has approved a substantial incentive package to support the investment. This tailor-made package is worth up to Rs 601.87 crore. It was granted as a special case under the state’s food processing policy.
The new facility will be located at Orvakal. It is designed as an integrated manufacturing plant. It will produce a range of popular beverage products for consumers.
The plant will manufacture carbonated soft drinks, fruit juices, and packaged drinking water. This diverse product line taps into several major consumer markets. It represents a strategic expansion for Reliance’s FMCG arm.
Employment generation is a key benefit of this project. Officials expect it to create direct jobs for around 1,200 people. This will provide a significant boost to the local economy in Kurnool.
The investment marks one of the largest fresh investments in the state’s food and beverage sector in recent years. It underscores the region’s growing appeal for major industrial projects. The state’s agricultural base and logistics are seen as key advantages.
The proposal went through a detailed review process. It was examined by the State Investment Promotion Committee in late November. The State Investment Promotion Board then met in early December to make its recommendation.
The board recommended granting customised incentives to support the project. The government has now formally cleared the entire proposal. The incentives are quite comprehensive and designed to facilitate the large-scale investment.
The total incentive package amounts to 37.10 percent of the project’s fixed capital investment. These benefits will be disbursed to the company over a five-year period. Certain standard policy conditions were relaxed to accommodate this major project.
A capital subsidy of 15 percent of eligible fixed capital investment is included. This subsidy is capped at Rs 25 crore. This direct financial support helps reduce the initial capital burden for Reliance.
The company will also receive a 100 percent reimbursement of net state GST. This applies to products manufactured and sold within Andhra Pradesh. This reimbursement will last for five years, with a ceiling of nearly Rs 494 crore.
Additional incentives focus on operational costs. The project qualifies for power cost reimbursement of Rs 1 per unit. A matching electricity duty exemption for five years is also part of the package.
These power-related incentives are together capped at Rs 81.72 crore. Furthermore, reimbursement of stamp duty and other land charges is sanctioned. This amount is up to Rs 1.20 crore.
State officials highlighted the strategic importance of the project. It aligns with a broader strategy to attract large-scale manufacturing investments. The focus is specifically on food processing and consumer goods.
This Reliance plant is a landmark development for Andhra Pradesh’s industrial landscape. It leverages the state’s infrastructure and agricultural strengths. The project promises economic activity and job creation in the Kurnool region.