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 and reported by Economic Times. The proposal could eventually attract investments of up to ₹2.7 lakh crore over the project’s lifetime and generate around 5,000 direct and 35,000 indirect jobs.
The project would use underground gasification technology to convert deep coal reserves into usable gas without conventional mining. Its first phase is expected to involve an investment of about ₹3,000 crore and would cover exploration, geological assessments and pilot demonstrations. The purpose of this phase is to establish the project’s technical and commercial feasibility.
A second phase, involving an initial investment of about ₹40,000 crore, would proceed only after the first phase is successfully completed and the necessary regulatory approvals are secured. The government document does not identify a commissioning date or specify the location of the proposed complex within Andhra Pradesh.
Reliance’s proposal comes as the state attracts a series of large industrial and technology investments. Google has committed $15 billion to develop an artificial intelligence hub in Andhra Pradesh, while Reliance and its joint-venture partners plan to invest $11 billion in data-centre capacity in the state. Kia’s Indian unit also announced plans on Thursday to invest about $2 billion in an additional manufacturing plant.
The scale and sequencing of the coal gasification proposal make regulatory approval a central part of the project’s progress. The initial exploration and pilot stage is intended to determine whether the underground technology can be deployed at the proposed site and whether the complex can operate on a commercially viable basis. The larger investment is conditional on the outcome of that stage, as well as on approvals from the relevant authorities.
Underground coal gasification differs from conventional coal extraction because the coal is converted below the surface rather than mined and transported in its conventional form. The proposal therefore links energy production with subsurface resource assessment, industrial infrastructure and future gas usage. The supplied document does not provide details on the intended end users of the gas, the proposed technology partners, land requirements, water demand or environmental safeguards.
The project is also expected to have a wider economic footprint if implemented. The document estimates 5,000 direct jobs and 35,000 indirect jobs, while projecting that the complex could attract investments of up to ₹2.7 lakh crore during its lifetime. Those figures remain linked to the project moving beyond feasibility work and receiving the required regulatory clearances.
Reliance had not immediately responded to Reuters’ request for comment, according to the report. The next formal milestone is the first phase of exploration, geological assessment and pilot demonstrations, after which the company and authorities will determine whether the proposed second phase can proceed.
