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Amaravati
Reliance Industries Ltd (RIL) plans to invest around Rs 43,000 crore in Andhra Pradesh to develop an integrated underground coal gasification complex, in a move expected to strengthen the state’s industrial infrastructure and generate around 40,000 employment opportunities. The proposed project could attract investments of up to Rs 2.7 lakh crore over 30 years, according to a draft agreement between the company and the Andhra Pradesh government.
The project will be developed in two phases, subject to technical assessments and regulatory approvals. The first phase will involve an estimated investment of Rs 3,000 crore and focus on exploration, seismic data collection, geological assessments and pilot demonstrations to establish its technical and commercial feasibility.
The second phase is expected to require an initial investment of around Rs 40,000 crore. It will commence only after successful completion of the initial trials, submission of a detailed project report and receipt of the necessary regulatory clearances.
The proposed complex will use underground coal gasification technology, which converts coal reserves located deep underground into usable gas without conventional mining. The project is expected to create approximately 5,000 direct jobs and 35,000 indirect employment opportunities.
The Andhra Pradesh Economic Development Board (APEDB) will act as the nodal agency to facilitate the project by coordinating with government departments for land, water and power requirements, along with necessary approvals from central ministries.
Reliance has already secured the Chintalpudi Sector A1 and Recherla coal blocks in Eluru district through commercial coal block auctions. The proposed project is also aligned with India’s broader efforts to expand domestic coal gasification capacity and reduce dependence on imported fuels and chemicals.