Project Overview
Reliance Industries Ltd (RIL) is set to invest ₹43,000 crore in an integrated underground coal gasification complex in Andhra Pradesh. The memorandum of understanding with the Andhra Pradesh government is expected to be signed on November 12, 2026. This project, spanning 30 years, is subject to regulatory approvals.
Project Phases
The project will be implemented in two phases. Phase one, estimated at ₹3,000 crore, will focus on exploration, seismic data acquisition, geological assessment, and a pilot demonstration. Phase two, planned at approximately ₹40,000 crore, will commence following the completion of phase one and the submission of a detailed project report.
Total Investment
The project’s potential investment over the 30-year duration is cited as ₹2.70 lakh crore. Some reports indicate a figure of ₹2.73 lakh crore.
Coal Supply
The Union Coal Ministry has awarded RIL the Chintalpudi Sector A1 and Recherla coal blocks in Eluru district. These blocks are intended to supply the coal needed for the gasification process.
Underground Coal Gasification
The technology used in this project is underground coal gasification. This method converts deep coal reserves into synthetic gas without the need for traditional surface mining techniques.
Job Creation
The project is projected to generate approximately 5,000 direct jobs and 35,000 indirect jobs.
Facilitation Agency
The Andhra Pradesh Economic Development Board will serve as the nodal facilitation agency. This agency will coordinate access to land, water, and power, liaising with state departments and central ministries.
Source: GK Today.
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