RIL proposes ₹2.73 lakh crore Andhra coal-gasification complex
Reliance Industries has proposed a 30-year investment of up to ₹2.73 lakh crore for an underground coal-gasification complex in Eluru, Andhra Pradesh. The project is contingent on exploration viability and could shape long-term parent-level capital allocation across the group, including its consumer businesses.
What happened
Reliance Industries Limited · Reliance Industries has proposed ₹2.73 lakh crore investment over 30 years for an underground coal gasification complex in Andhra
Key facts
- ₹2.73 lakh crore proposed investment over 30 years
- Up to ₹3,000 crore for exploration and pilot phase
- ₹1.2 lakh crore for development phase
- ₹1.5 lakh crore for production phase
- 3,000-5,000 direct jobs
- 20,000-35,000 indirect and induced livelihoods
- 3,130.61 million tonnes of coal reserves
Why this matters
Reliance should treat the project as a strategic portfolio option rather than committed capex for now, preserving flexibility for consumer-business investments until resource viability is proven.
What to watch
- Exploration permits, drilling results and declared recoverable gas/resource estimates during 2026-27.
- Disclosure of committed versus contingent capex and the share funded by RIL balance sheet.
- Environmental clearances, groundwater assessments, land acquisition progress and local opposition.
- Government policy on coal gasification, carbon pricing, gas imports and incentives for domestic gas/chemicals.
- Any slowdown in Jio 5G, retail store expansion, new-format investment or consumer-business deleveraging.
- Appointment of EPC contractors, offtake agreements, joint-venture partners or project-finance arrangements.
- Begin exploration, drilling and geological appraisal in Eluru from Q3 2026.
- Seek state and central environmental, mining, groundwater and land-related clearances.
- Assess offtake options for syngas, chemicals, fertilizers, power or hydrogen-linked uses.
- Structure the project in phases and explore external financing, strategic partners or state support.
- Reprioritize parent-level capex sequencing if early exploration indicates commercial potential.