Reliance plans ₹43,000 crore coal gasification project in Andhra Pradesh
The two-phase project aims to convert deep coal reserves into gas using underground technology without conventional mining.
Reliance Industries plans to invest approximately ₹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 proposed facility would use technology to turn deep coal reserves into usable gas without the need for traditional mining. The project is expected to create around 5,000 direct and 35,000 indirect jobs, with potential lifetime investments reaching up to ₹2.7 trillion.
The investment will be carried out in two stages. The first phase involves an outlay of about ₹3,000 crore for geological assessments, exploration, and pilot demonstrations to test technical and commercial feasibility.
The second phase, which requires an initial investment of approximately ₹40,000 crore, will only proceed if the first phase is successfully completed and necessary regulatory approvals are obtained. Reliance did not immediately respond to requests for comment.
This proposal follows other major investments in the state, including a $15 billion AI hub commitment from Google and an $11 billion data centre capacity plan by Reliance and its joint venture partners. Additionally, the Indian unit of South Korean carmaker Kia announced plans on Thursday to invest about $2 billion for a new manufacturing plant in Andhra Pradesh.
