Reliance plans Rs 43,000 crore coal gasification project in Andhra Pradesh
The integrated underground coal gasification facility is expected to create 40,000 total jobs over its lifetime.
Reliance Industries plans to invest approximately Rs 43,000 crore ($4.59 billion) to develop an integrated underground coal gasification complex in Andhra Pradesh, according to a government document seen by Reuters, as reported by Business Standard.
The project will use underground gasification technology to transform deep coal reserves into usable gas without the use of conventional mining methods.
The company intends to execute the project in two stages. The first phase involves an investment of about Rs 3,000 crore for geological assessments, exploration, and pilot demonstrations to check technical and commercial viability.
The second phase, requiring roughly Rs 40,000 crore, will begin once the first phase is successfully finished and necessary regulatory approvals are received.
The Union Coal Ministry has granted Reliance Industries the Recherla and Chintalpudi Sector A1 coal blocks in the Eluru district. The Andhra Pradesh Economic Development Board (APEDB) will facilitate the project by coordinating with state departments for land, water, and electricity.
The document indicates the project could eventually attract up to Rs 2.7 lakh crore in lifetime investments and generate 5,000 direct and 35,000 indirect jobs.
