Reliance Industries plans to invest about ₹43,000 crore in two phases to develop an integrated underground coal gasification complex in Andhra Pradesh, according to a government document seen by Reuters. The project would use underground gasification technology to convert deep coal reserves into usable gas without conventional mining, subject to technical feasibility studies and regulatory approvals.
The proposal is expected to begin with an investment of about ₹3,000 crore for exploration, geological assessments and pilot demonstrations. This first phase is intended to establish whether the project is technically and commercially feasible. A second phase, involving an initial investment of about ₹40,000 crore, would proceed only after the first phase is completed successfully and the required regulatory approvals are obtained.
The project could eventually attract investments of up to ₹2.7 lakh crore over its lifetime, the government document showed. It is also expected to generate around 5,000 direct jobs and 35,000 indirect jobs, although the report did not provide a detailed breakdown of the employment categories, construction period or proposed location within Andhra Pradesh.
Underground coal gasification involves converting coal in place into gas rather than extracting it through conventional mining. Reliance’s proposed complex would therefore depend on the results of underground assessments, pilot operations and the approvals required for a large industrial and energy facility. The company did not immediately respond to Reuters’ request for comment.
The proposal comes as Andhra Pradesh seeks to attract large investments across technology, manufacturing and energy-linked industries. The report said Google has committed $15 billion to build an artificial intelligence hub in the state, while Reliance and its joint-venture partners plan to invest $11 billion in data-centre capacity. South Korean carmaker Kia’s Indian unit also announced plans on Thursday to invest about $2 billion in an additional manufacturing plant in Andhra Pradesh.
These announcements place the proposed gasification complex within a wider investment push, but the Reliance project remains at an early stage. The first phase must establish the resource base, geological conditions and operational viability before the larger investment can move forward. The project will also require the necessary regulatory clearances before construction or full-scale development begins.
The reported employment figures and potential lifetime investment are projections contained in the government document and are linked to the project’s eventual development. They do not represent completed investment or operational job creation at this stage. The immediate milestone is the proposed exploration and pilot phase, followed by decisions on the second phase after feasibility results and regulatory approvals are available.
