Reliance Industries proposes ₹2.73 lakh crore coal project in Andhra Pradesh

Reliance Industries has proposed a ₹2.73 lakh crore (approximately USD 32.7 billion) investment to develop an integrated underground coal gasification (UCG) complex in the Eluru district of Andhra Pradesh. The 30-year project aims to utilize UCG technology to convert deep coal reserves into synthesis gas (syngas), which can serve as feedstock for fertilizers, chemicals, and other industrial applications.

The project is expected to be implemented in phases. Reliance plans an initial investment of up to ₹3,000 crore between Q3 2026 and Q4 2027 to focus on exploration and pilot-scale testing. These activities will evaluate geological conditions and the commercial viability of the technology.

By accessing coal reserves that are difficult to recover through conventional mining, the initiative seeks to enhance India’s energy security and reduce dependence on imported raw materials. While the company announced this massive undertaking, its shares saw a marginal intraday dip of 0.32% to ₹1,309.00 during recent trading.