Reliance Industries to Invest INR 43,000 Crore in Andhra Pradesh Coal Gasification Project

Reliance Industries Ltd. (RIL) has entered into a memorandum of understanding (MoU) with the Andhra Pradesh government for an integrated underground coal gasification (UCG) project, committing an initial investment of INR 43,000 crore over the next two years.

The project is estimated to have an overall investment potential of INR 2.73 lakh crore, to be implemented in three phases by 2030. The project is proposed to come up at the Chintalapudi and Recherla coal blocks in Eluru district. RIL acquired the blocks through an e-auction conducted by the Ministry of Coal to develop a large-scale underground coal gasification facility.

The proposed development is expected to generate around 5,000 direct employment opportunities and 35,000 indirect jobs.

The first phase will involve an investment of INR 3,000 crore towards exploration, evaluation, pilot demonstration and feasibility studies. RIL will examine the project's technical performance, safety requirements, environmental safeguards and commercial viability as part of this phase.

The findings will guide decisions on the project's scope, site location and infrastructure requirements. They will also form the basis for preparing a detailed project report (DPR) and assessing investments for the subsequent phases.