Reliance Industries Ltd (RIL) is set to begin exploration for an underground coal gasification pilot in Andhra Pradesh’s Eluru district in January, launching a project that the company aims to complete by mid-2028 and plans to develop in three phases.
The project will draw on coal resources in the Chintalapudi and Recherla blocks. Work will begin in Chintalapudi, with activity in the two blocks scheduled to be phased rather than started simultaneously, according to The Hindu BusinessLine.
Underground coal gasification converts coal into synthetic gas within an underground seam, avoiding conventional surface mining for the gasification process. RIL plans to use Controlled Retracting Injection Point, or CRIP, technology for the project. The company is also working on arrangements to integrate the resource with the electricity grid and other supporting infrastructure.
The initial exploration and pilot phase is expected to involve an investment of up to ₹3,000 crore. RIL intends to run exploration and pilot work simultaneously, with the objective of completing the pilot by the middle of 2028. A further investment proposal will be prepared if the pilot demonstrates strong results and commercial viability, sources cited by BusinessLine said.
The project follows the Ministry of Coal’s commercial mine bidding rounds and production and development agreements executed in April 2026 with successful bidders for four coal mines under the 14th round of commercial auctions. The agreements included India’s first tranche of commercial coal mines with embedded provisions for underground coal gasification. RIL secured the Recherla and Chintalapudi Sector A1 mines.
The planned development will require dedicated arrangements for water and power. To meet the project’s heavy water requirement without placing additional pressure on local sources, RIL plans to establish a desalination plant at Machilipatnam in Krishna district. During the pilot stage, the company will purchase electricity from the state grid. A dedicated captive power plant is planned if the project advances to full-scale production.
The synthetic gas produced by the pilot does not yet have a final pricing structure. Sources cited in the report said the company would prefer a highly competitive price structure, although the commercial terms will depend on the pilot’s results and subsequent requirements.
RIL’s move extends its existing experience in oil and gas exploration and coalbed methane into underground coal gasification. The company’s major refinery and petrochemical complex is located at Jamnagar on India’s western coast. The Andhra Pradesh project is part of a broader internal plan to develop new energy and industrial hubs on the eastern coast, according to a source quoted by BusinessLine.
The immediate milestones are the start of exploration in Chintalapudi, the parallel pilot activity and the assessment of whether the technology can be deployed at commercial scale. The project’s next investment phase and full-scale power infrastructure will depend on the pilot’s technical and commercial outcome.
