RIL plans ₹2.73 lakh cr coal gasification project

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Key points

• Reliance Industries has proposed investing regarding ₹2.73 lakh crore over 30 years to develop India's first integrated Underground Coal Gasification complex in Andhra Pradesh's Eluru district.
• (Catch all the Business News, Breaking News and Latest News Updates on The Economic Times.).
• India has a vast coal resource of regarding 360 billion tonnes, with almost half of this (concerning 160 billion tonnes) too deep and economically unviable for conventional mining.
• The initial proposal of the firm has pegged the potential investment at ₹2.73 lakh crore throughout the entire project life of 30 years.
• Reliance industries limitedReliance Industries LimitedUnderground Coal Gasificationcoal gasificationAndhra Pradesh coal projectEluru coal gasification complexcoal miningsynthesis gasChintalapudi coal blockRecherla coal block.

RIL proposes Rs 2.73 lakh crore investment for India's first coal gasification complex in Andhra.

RIL proposes Rs 2.73 lakh crore investment for India's first coal gasification complex in Andhra. ET BureauLast Updated: Aug 20, 2026, 12: 32: 00 AM IST.

Reliance Industries has proposed investing regarding ₹2.73 lakh crore over 30 years to develop India's first integrated Underground Coal Gasification complex in Andhra Pradesh's Eluru district. The project, subject to commercial viability after exploration, will employ deep coal reserves in the Chintalapudi and Recherla blocks to produce syngas.

Notably, the initial proposal of the firm has pegged the potential investment at ₹2.73 lakh crore throughout the entire project life of 30 years. RIL will commence exploration activities in the current fiscal. The investment is proposed to be done in three phases. The exploration and pilot phase (from Q3 of 2026 to Q4 of 2027) will see an investment of upto ₹3, 000 crore. According to the company's proposal submitted to the state administration. It ET has seen, if the exploration is successful, RIL will invest ₹1, 20, 000 crore in the development phase from 2028-30 and ₹1, 50, 000 crore in the production phase from 2030 onwards. As per firm estimates, the project is anticipated to create 3, 000-5, 000 direct jobs at steady-state operations and 20, 000-35, 000 indirect and induced livelihoods throughout the regional supply chain. Live Events.

Underground Coal Gasification (UCG) is an in-situ process that converts deep-seated coal which is too deep and uneconomical for conventional mining, into usable synthesis gas (syngas) without physically extracting the coal. India has a vast coal resource of regarding 360 billion tonnes, with almost half of this (concerning 160 billion tonnes) too deep and economically unviable for conventional mining.

UCG can convert AP's deep, otherwise stranded coal resources-over 1 billion tonnes throughout these two blocks alone-into a durable source of energy, chemicals and revenue for the State, without the land disturbance, displacement or underground manpower risk associated with conventional mining. RIL did not respond to an email requesting comment. The Chintalapudi coal block. It is spread throughout 3, 000 acres, is estimated to contain 904.94 million tonnes of G-12 grade coal. The Recherla block, covering 5, 500 acres, holds an estimated 2, 225.67 million tonnes of G-13 grade coal. Together, the two mines are estimated to contain 3, 130.61 million tonnes of coal reserves. Authorities stated the coal deposits lie at depths of more than 600 metres. The project is in sync with National Coal Gasification Mission's objective of 100 MT of coal gasification by 2030. UCG will support in reducing India's dependence on crude imports. It expose the economy to rate volatility, currency movement, external supply shocks and geopolitical and maritime disruptions like closure of Strait of Hormuz. Add Now!

Taken together, the developments around RIL plans ₹2.73 lakh cr coal gasification project point to a situation that is still moving, and the coming days should bring more clarity.