Reliance to invest Rs 1,622 cr in Kurnool beverage plant
- RCPL to set up integrated beverage manufacturing facility at Orvakal, producing soft drinks, juices and packaged water; 1,200 direct jobs expected
- State govt clears tailor-made incentives worth up to Rs 601.87 cr under AP Food Processing Policy 4.0, including capital subsidy, SGST reimbursement and power concessions
- This is one of the largest recent investments in AP’s food and beverage processing sector, aimed at boosting manufacturing and value addition
Vijayawada: Reliance Consumer Products Limited (RCPL), the fast-moving consumer goods arm of Reliance Industries, is set to invest Rs 1,622 crore to establish an integrated beverage manufacturing facility at Orvakal in Kurnool district, after the state government approved a tailor-made incentive package worth up to Rs 601.87 crore.
The proposed facility will manufacture carbonated soft drinks, fruit juices and packaged drinking water, and is expected to generate direct employment for around 1,200 people. The project marks one of the largest fresh investments in Andhra Pradesh’s food and beverage processing sector in recent years.
The investment proposal was examined by the State Investment Promotion Committee (SIPC) on November 28, 2025, and subsequently placed before the State Investment Promotion Board (SIPB), which met on December 4. The SIPB recommended the grant of customised incentives to support the project.
The state government has now formally cleared the proposal, sanctioning the incentive package as a special case under the Andhra Pradesh Food Processing Policy (4.0) 2024–29.
The incentives, amounting to 37.10 per cent of the project’s fixed capital investment, will be disbursed over a five-year period, with certain ineligible conditions under the policy relaxed to accommodate the project.
The approved incentives include a capital subsidy of 15 per cent of eligible fixed capital investment, capped at Rs 25 crore. RCPL will also receive 100 per cent reimbursement of net state goods and services tax (SGST) generated from products manufactured and sold within Andhra Pradesh, for a period of five years, subject to a ceiling of Rs 493.95 crore.
In addition, the project qualifies for power cost reimbursement of Rs 1 per unit and a matching electricity duty exemption for five years, together capped at Rs 81.72 crore. Reimbursement of stamp duty, transfer duty and land conversion charges, up to Rs 1.20 crore, has also been sanctioned.
Officials said the project aligns with the State’s broader strategy to attract large-scale food processing and consumer goods manufacturing investments, leveraging Andhra Pradesh’s logistics infrastructure and agricultural base.
