Reliance Industries ₹2.7 Trillion Coal Gasification in AP

Reliance Industries Ltd (RIL) has signed an MoU with the Andhra Pradesh government to develop an underground coal gasification project at the Chintalapudi and Recherla coal blocks in Eluru district. The project carries an estimated long-term investment potential of ₹2.7 trillion, to be developed in three phases. RIL plans an initial investment of approximately ₹43,000 crore, including ₹3,000 crore towards Phase-1 exploration, pilot demonstrations and feasibility assessments, followed by an estimated ₹40,000 crore in Phase-2 commercial development, subject to successful initial outcomes. The project is expected to generate around 5,000 direct and 35,000 indirect employment opportunities. Strategically, underground coal gasification offers RIL an opportunity to leverage domestic coal resources through advanced technology, potentially strengthening India's energy security while reducing dependence on imported fuels and chemicals. The initiative also aligns with the government's coal gasification push and could open a new growth avenue for RIL beyond its conventional energy operations. However, execution feasibility, technological performance, capital intensity and long-term project economics remain key monitorables. Competition from players such as Adani Enterprises and NTPC further highlights the emerging opportunity in India's coal gasification sector.