Reliance Plans About Rs 43,000 Crore Coal-to-Gas Plant in Andhra
Reliance Industries plans a two-phase underground coal gasification project in Eluru district, set out in a draft MoU with Andhra Pradesh.
Key Takeaways
- Reliance Industries plans about Rs 43,000 crore for a coal-to-gas project in Andhra Pradesh.
- Phase 1 is about Rs 3,000 crore and Phase 2 about Rs 40,000 crore.
- Total investment potential is up to about Rs 2.7 lakh crore over 30 years.
- The project is expected to create about 40,000 jobs, about 5,000 of them direct.
- It uses the Chintalpudi Sector A1 and Recherla coal blocks in Eluru district.
Table of Contents 5 sections
Reliance Industries plans to invest about Rs 43,000 crore in an underground coal gasification project in Eluru district, Andhra Pradesh, according to reports published on November 12, 2026. The project would turn coal deep underground into gas without conventional mining, and the plan is set out in a draft memorandum of understanding (MoU) between Reliance and the state.
The Rs 43,000 crore is split into two phases. The first, of about Rs 3,000 crore, covers exploration, seismic data, geological assessments and pilot demonstrations. The second, of about Rs 40,000 crore, would start only after the first phase is complete and a detailed project report is submitted. Over 30 years, the project's total investment potential is put at up to about Rs 2.7 lakh crore, and it is expected to create about 40,000 jobs.
Reliance Industries' Andhra Pradesh coal-to-gas plan at a glance
| Detail | Value |
|---|---|
| Company | Reliance Industries |
| Project | Underground coal gasification (coal-to-gas) complex |
| Location | Eluru district, Andhra Pradesh |
| Planned investment | About Rs 43,000 crore across two phases |
| Phase 1 | About Rs 3,000 crore for exploration, seismic data, geological assessments and pilots |
| Phase 2 | About Rs 40,000 crore, after Phase 1 and a detailed project report |
| Long-term potential | Up to about Rs 2.7 lakh crore over 30 years |
| Jobs | About 40,000 (about 5,000 direct and 35,000 indirect) |
| Coal blocks | Chintalpudi Sector A1 and Recherla |
| Nodal agency | Andhra Pradesh Economic Development Board (APEDB) |
How Reliance got the Eluru coal blocks it plans to gasify
The project rests on two coal blocks in Eluru district, Chintalpudi Sector A1 and Recherla, which the Union Ministry of Coal awarded to Reliance Industries. In April 2026, the ministry signed mine agreements with Reliance for these two blocks under the 14th round of commercial coal auctions. They were among the first commercial coal mines in India awarded with provisions for underground coal gasification.
In August 2026, reports said Reliance had proposed about Rs 2.73 lakh crore over 30 years for an integrated underground coal gasification complex in Eluru district, starting with an exploration and pilot stage of up to Rs 3,000 crore. The November reports put the two phases of the plan at about Rs 43,000 crore. The Ministry of Coal has set a target of 100 million tonnes of coal gasification by 2030.
| When | What happened |
|---|---|
| April 2026 | The Ministry of Coal signs mine agreements with Reliance for the Chintalpudi Sector A1 and Recherla blocks, with underground coal gasification provisions |
| August 2026 | Reports say Reliance has proposed about Rs 2.73 lakh crore over 30 years for a coal gasification complex in Eluru district |
| November 12, 2026 | Reports say Reliance plans about Rs 43,000 crore across two phases, set out in a draft MoU with the state |
What the state board will do for the Reliance project
The Andhra Pradesh Economic Development Board (APEDB) will be the nodal agency for the project. It will coordinate with state departments on access to land, water and power, and work with central ministries on approvals.
The project remains subject to regulatory approvals. The second phase depends on the results of the first, including the pilot trials, and on the detailed project report.
Reliance's coal gasification plan after the latest reports
Reliance Industries holds the Chintalpudi Sector A1 and Recherla coal blocks in Eluru district and has a two-phase plan of about Rs 43,000 crore to turn their coal into gas. The first phase of about Rs 3,000 crore covers exploration and pilots, and the project is expected to create about 40,000 jobs, including about 5,000 direct jobs.
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Frequently Asked Questions
What is Reliance Industries planning in Andhra Pradesh?
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What does the first phase of the Reliance Industries project cover?
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What is underground coal gasification, as planned by Reliance Industries?
How will the Andhra Pradesh Economic Development Board help Reliance Industries?
When did Reliance Industries get its coal mine agreements?
Has Reliance Industries signed an MoU with Andhra Pradesh?
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