Reliance plans Rs 43,000 crore coal gasification project in Andhra Pradesh
The two-phase project aims to convert deep coal reserves into gas without using conventional mining methods.
Reliance Industries plans to invest approximately Rs 43,000 crore to develop an integrated underground coal gasification facility in Andhra Pradesh, according to a government document seen by Business Standard. The project would use technology to turn deep coal deposits into usable gas without traditional mining.
The investment is structured in two stages. The first phase involves an outlay of about Rs 3,000 crore for geological assessments, exploration, and pilot demonstrations to test technical and commercial viability. The second phase, requiring roughly Rs 40,000 crore, will only proceed if the first phase succeeds and regulatory approvals are received.
The Union Coal Ministry has granted Reliance Industries the Recherla and Chintalpudi Sector A1 coal blocks, located in the Eluru district. The Andhra Pradesh Economic Development Board (APEDB) will facilitate the project by coordinating with state departments and central ministries regarding electricity, water, and land access.
The project could eventually attract up to Rs 2.7 lakh crore in total lifetime investments and create around 5,000 direct and 35,000 indirect jobs. Reliance did not immediately respond to requests for comment.
This proposal follows other major commitments in the state, including a $15 billion AI hub by Google and an $11 billion data centre investment by Reliance and its joint venture partners. Additionally, Kia’s Indian unit announced plans on Thursday to invest about $2 billion for a new manufacturing plant in Andhra Pradesh.
