Reliance Industries Plans ₹43,000 Crore Coal Gasification Project In Andhra Pradesh, 40,000 Jobs On Horizon
Mumbai: Reliance Industries Limited (RIL), led by billionaire Mukesh Ambani, is planning a major investment of approximately ₹43,000 crore in an underground coal gasification project in Andhra Pradesh, marking another significant industrial development in the state.
According to a Reuters report citing a draft memorandum of understanding (MoU) dated November 12, the proposed project could eventually attract investments of up to ₹2.7 lakh crore and generate around 40,000 employment opportunities.
The agreement is proposed between Reliance Industries and the Andhra Pradesh Economic Development Board.
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The ambitious coal gasification project will be developed in two phases, with investments linked to technical feasibility and regulatory approvals. In the first phase, Reliance plans to invest ₹3,000 crore in exploration, geological assessments and pilot demonstrations to evaluate the project's commercial viability.
The second phase, involving an initial investment of ₹40,000 crore, would begin after successful trials and necessary government clearances. The project could generate approximately 5,000 direct jobs and 35,000 indirect employment opportunities.
Reliance has not yet publicly commented on the proposed investment.
Why Coal Gasification Matters
Underground coal gasification converts coal into usable gas without conventional mining, potentially providing an alternative source of industrial fuel and chemical feedstock.
India aims to achieve annual coal gasification capacity of 100 million tonnes by 2030 to reduce dependence on imported fuels and chemicals. The Centre has also announced a ₹37,500 crore incentive programme to support coal gasification projects.
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Reliance secured the Chintalpudi Sector A1 and Recherla coal blocks in Andhra Pradesh's Eluru district in April. The proposed investment comes amid growing industrial activity in Andhra Pradesh, including Google's planned $15 billion artificial intelligence hub and major data centre investments.
Reliance already operates a petroleum coke gasification facility at its Jamnagar refinery in Gujarat, supporting its industrial energy requirements.
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