Reliance Industries Proposes ₹2.73 Lakh Crore Underground Coal Gasification Project in Andhra Pradesh

Reliance Industries Limited (RIL) has proposed investing around ₹2.73 lakh crore over 30 years to develop an integrated underground coal gasification complex in Andhra Pradesh's Eluru district, as per The Economic Times news report.  

The project will cover the Chintalapudi and Recherla coal blocks, acquired by the company through coal ministry e-auctions earlier in 2026. The proposed investment is subject to the results of exploration and the commercial viability of the project. 

Exploration to Begin This Financial Year 

RIL plans to begin exploration work during the current financial year. Under its proposal to the Andhra Pradesh government, the project has been divided into three investment phases. 

The exploration and pilot stage, running from Q3 2026 to Q4 2027, is to involve investment of up to ₹3,000 crore. If the findings support further development, the company has proposed ₹1.20 lakh crore for the development phase between 2028 and 2030. 

Production Investment From 2030 

The production phase is proposed to begin from 2030, with a planned investment of ₹1.50 lakh crore. The total proposed spending across the three phases is around ₹2.73 lakh crore over the project's estimated 30-year life. 

As per the report, steady operations could lead to 3,000-5,000 direct jobs and support a further 20,000-35,000 indirect and induced livelihoods across the region. 

Coal Reserves in Two Blocks 

The Chintalapudi block covers about 3,000 acres and is estimated to contain 904.94 million tonnes of G-12 grade coal. The Recherla block spans around 5,500 acres and has estimated reserves of 2,225.67 million tonnes of G-13 grade coal. 

Combined reserves at the two blocks are estimated at 3,130.61 million tonnes. Officials said the coal deposits are located at depths of more than 600 metres. 

Gasification of Deep Coal 

Underground coal gasification converts coal located deep below the surface into synthesis gas, or syngas, without conventional extraction.  

India has around 360 billion tonnes of coal resources, with about 160 billion tonnes considered too deep or uneconomical for conventional mining. 

The proposal is aligned with the National Coal Gasification Mission, which has set a target of 100 million tonnes of coal gasification by 2030. 

Read More: Hyundai Motor India Share Price Surges; Plans to Increase Vehicles Price Upto 1% Across its Portfolio! 

Reliance Industries Limited (RIL) Share Price Performance  

As of August 20, 2026, 12:18 pm, Reliance Industries Ltd share price was trading at ₹1,311.30, up 0.023% from the previous closing price. 

Conclusion 

The proposed project will begin with exploration and pilot work, followed by development and production phases if found commercially viable. RIL has estimated total investment at ₹2.73 lakh crore over 30 years. 

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