Reliance to invest ₹43,000 crore in Andhra coal gasification project

Reliance Industries plans to invest around ₹43,000 crore in two phases to develop an integrated underground coal gasification complex in Andhra Pradesh, news agency Reuters reported, quoting a government document.

The project, which will be developed over 30 years, could attract total investments of up to ₹2.7 lakh crore over its lifetime, the document showed. It is expected to generate around 5,000 direct and 35,000 indirect jobs in the state.

According to a separate report, Reliance Industries is expected to sign a memorandum of understanding (MoU) with the Andhra Pradesh government for the project on Thursday. The Andhra Pradesh Economic Development Board (APEDB) will act as the nodal facilitation agency, coordinating with government departments on access to land, water and power, as well as liaising with central ministries.

Reliance's coal gasification project to be developed in phases

The proposed investment of ₹43,000 crore will be spread across two phases. The first phase will involve an investment of around ₹3,000 crore and focus on exploration, seismic data acquisition, geological assessments and pilot demonstrations to establish the project's technical and commercial feasibility.

The second phase will involve an initial investment of approximately ₹40,000 crore. However, its implementation will depend on the successful completion of the first phase, submission of a detailed project report and receipt of necessary regulatory approvals, according to the reports.

Reliance will use underground coal gasification technology to convert deep coal reserves into usable gas without conventional mining. The company was awarded the Chintalpudi Sector A1 and Recherla coal blocks in Andhra Pradesh's Eluru district by the Union Coal Ministry.

Andhra Pradesh attracts major investment commitments

The proposed Reliance project adds to a series of large investment announcements in Andhra Pradesh.

The proposed Reliance project adds to a series of major investment commitments in Andhra Pradesh. Google announced its $15 billion investment to establish an AI hub in Visakhapatnam in October, 2025, with the investment spread over five years (2026–2030). Subsequently, in November, 2025, Digital Connexion, a joint venture between Reliance Industries, Brookfield Corporation and Digital Realty, announced plans to invest $11 billion to develop 1 GW of AI data centre capacity in the state.

South Korean automaker Kia's Indian unit also announced plans on Thursday to invest around $2 billion to establish an additional manufacturing plant in the state.