Reliance Industries Limited, led by billionaire Mukesh Ambani, is planning an investment of about ₹43,000 crore ($4.59 billion) in two phases to build an integrated underground coal gasification complex in Andhra Pradesh, according to a government document seen by Reuters. Reliance did not immediately respond to requests for comment.
The draft memorandum of understanding, dated November 12, is proposed between Reliance Industries and the Andhra Pradesh Economic Development Board. The project could eventually attract investments of up to ₹2.7 lakh crore over its lifetime, which a Moneycontrol report cited by Free Press Journal says would run over 30 years, and could generate around 5,000 direct and 35,000 indirect jobs.S1S2
The first phase will involve about ₹3,000 crore for exploration, geological assessments and pilot demonstrations to establish technical and commercial feasibility. The second phase, with an initial investment of about ₹40,000 crore, will proceed only after successful trials and receipt of the necessary regulatory approvals.S1S2
Underground coal gasification turns deep coal reserves into usable gas without conventional mining, offering a possible source of industrial fuel and chemical feedstock. India aims to reach annual coal gasification capacity of 100 million tonnes by 2030 to reduce dependence on imported fuels and chemicals, and the Centre has announced a ₹37,500 crore incentive programme to support such projects.S1
Reliance secured the Chintalpudi Sector A1 and Recherla coal blocks in Eluru district in April. The proposal adds to a wave of major investments in the state, where Google has committed $15 billion to an AI hub and Reliance and its joint venture partners plan $11 billion in data centre capacity. South Korean carmaker Kia's Indian unit also announced plans to invest about $2 billion in an additional manufacturing plant in the state.S1S2
