Reliance Industries Plans ₹43,000 Crore Underground Coal-to-Gas Project in Two Phases in Andhra Pradesh

Reliance Industries Limited (RIL) plans to invest approximately ₹43,000 crore to develop an integrated underground coal gasification (UCG) complex in Eluru district, Andhra Pradesh, targeting the Chintalpudi Sector A1 and Recherla coal blocks secured through the Ministry of Coal's commercial auction process.

The project will initially involve ₹3,000 crore for geological exploration, seismic surveys, resource assessment and pilot demonstrations to establish technical and commercial feasibility. Subject to successful trials, submission of a detailed project report (DPR) and statutory approvals, Reliance proposes a further ₹40,000 crore investment for commercial-scale development and associated infrastructure.

The complex will employ underground coal gasification technology to convert deep coal reserves into synthesis gas without conventional mining, supporting potential industrial fuel and chemical applications.

Reliance is reportedly preparing a memorandum of understanding with the Andhra Pradesh government, with the Andhra Pradesh Economic Development Board (APEDB) facilitating land, water, power and regulatory coordination.

The broader development could attract cumulative investments of up to ₹2.70 lakh crore over 30 years and generate approximately 5,000 direct and 35,000 indirect jobs. However, these long-term projections remain conditional on feasibility and approvals, with commercial construction schedules and major EPC contracts yet to be confirmed.