Reliance Proposes ₹2.73 Lakh Crore Underground Coal Gasification Project in Andhra Pradesh

Reliance Industries Ltd (RIL) has proposed an investment of approximately ₹2.73 lakh crore over 30 years to develop an integrated Underground Coal Gasification (UCG) complex in Eluru district, Andhra Pradesh. The project will be developed using coal resources from the Chintalapudi and Recherla blocks, which RIL recently secured through a coal-block e-auction.

The project is planned in three phases. RIL proposes to invest up to ₹3,000 crore during the exploration and pilot phase from Q3 2026 to Q4 2027. Subject to successful exploration and commercial viability, around ₹1.20 lakh crore will be invested during the development phase between 2028 and 2030, followed by ₹1.50 lakh crore in the production phase from 2030 onwards.

The UCG complex will convert deep underground coal into syngas, which can be used to produce hydrogen, methanol, ammonia, synthetic natural gas and other industrial products. The project could create 3,000–5,000 direct jobs and 20,000–35,000 indirect and induced livelihoods.

Project Location: Eluru, Andhra Pradesh

Investment: ₹2.73 lakh crore

Project Life: 30 years

Technology: Underground Coal Gasification

Status: Proposed / Exploration phase

Expected Start of Exploration: Q3 FY2026