Reliance Plans ₹43,000 Crore Coal Gasification Project in Andhra Pradesh

On 12 November 2026, Reliance Industries Ltd (RIL) was expected to sign a memorandum of understanding with the Andhra Pradesh government for an integrated underground coal gasification complex. The first two phases are planned to involve about ₹43,000 crore; the proposed 30-year project remains subject to regulatory approvals.

Phased investment and coal resources

Phase one, estimated at ₹3,000 crore, will cover exploration, seismic data acquisition, geological assessment and a pilot demonstration. Phase two, planned at around ₹40,000 crore, is to begin after phase one is completed and a detailed project report is submitted. The project’s potential investment over 30 years is cited as ₹2.70 lakh crore, although some reports give ₹2.73 lakh crore.

The Union Coal Ministry awarded RIL the Chintalpudi Sector A1 and Recherla coal blocks in Eluru district, which are intended to supply the complex. Underground coal gasification will convert deep coal reserves into synthetic gas without conventional mining. The project is estimated to create about 5,000 direct and 35,000 indirect jobs.

Project facilitation

The Andhra Pradesh Economic Development Board will act as the nodal facilitation agency, coordinating access to land, water and power with state departments and liaising with central ministries.

Important Facts for Exams

• In-situ reaction: Underground coal gasification takes place in unmined seams, with oxidants and steam injected to drive gasification underground.
• Well arrangement: Underground coal gasification uses injection wells to supply oxidants and steam, while separate production wells bring gas to the surface.
• Coal permeability: Because coal seams often do not naturally transmit gas adequately, underground coal gasification may use hydro-fracturing, electric-linkage or reverse combustion.