Reliance proposes ₹2.73 lakh crore coal-gasification complex in Andhra Pradesh
Reliance Industries has proposed investing ₹2.73 lakh crore over 30 years in an underground coal gasification complex in Eluru, Andhra Pradesh, subject to exploration success. Exploration is slated to begin in FY2026, with production targeted from 2030.
What happened
Reliance Industries Ltd · Reliance Industries proposes investing ₹2.73 lakh crore over 30 years in an underground coal gasification complex in Andhra Pradesh’s
Key facts
- ₹2.73 lakh crore total proposed investment over 30 years
- ₹3,000 crore exploration and pilot investment
- ₹1.20 lakh crore development-phase investment
- ₹1.50 lakh crore production-phase investment
- 3,000-5,000 direct jobs
- 20,000-35,000 indirect and induced livelihoods
- 3,000-acre Chintalapudi coal block
- 5,500-acre Recherla coal block
- 3,130.61 million tonnes combined coal reserves
Why this matters
The Andhra Pradesh project signals Reliance’s appetite for large-scale, resource-linked investments and could create future partnership opportunities across infrastructure, technology and industrial supply chains.
What to watch
- Formal exploration license award and disclosed acreage or coal-block details.
- FY2026-28 drilling results, reserve estimates and pilot-gasification performance.
- Environmental clearance conditions, especially groundwater monitoring, emissions rules and community opposition.
- Any binding state incentives, tax concessions, water allocation or rail/pipeline infrastructure commitments.
- A disclosed final investment decision, project phasing, financing structure or strategic partner.
- Changes in Indian coal-gasification policy, carbon-market rules, gas pricing and imported LNG economics.
- Evidence that Reliance trims, delays or accelerates retail-store, logistics or consumer-brand capex.
- Seek Andhra Pradesh exploration licenses, land access, water permissions and environmental clearances before major capital deployment.
- Run FY2026 onward drilling and geological studies to establish coal seam quality, recoverability and gas yields.
- Pursue central and state incentives, infrastructure commitments and offtake frameworks for synthetic gas, chemicals or power.
- Position the project alongside Reliance's renewables and green-hydrogen plans to mitigate carbon and financing concerns.
- Maintain retail and consumer expansion selectively, with greater emphasis on projects that can generate cash while energy capex remains exploratory.