Now Reading: RIL proposes Rs 2.73 lakh crore coal gasification project in Andhra Pradesh
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RIL proposes Rs 2.73 lakh crore coal gasification project in Andhra Pradesh
RIL proposes Rs 2.73 lakh crore coal gasification project in Andhra Pradesh
Reliance Industries Ltd (RIL) has proposed an investment of about Rs 2.73 lakh crore over 30 years to develop India's first integrated Underground Coal Gasification (UCG) complex in Andhra Pradesh's Eluru district. The project, subject to commercial viability after exploration, will convert deep coal reserves from the Chintalapudi and Recherla blocks into syngas for domestic production of chemicals, fertilisers and fuels.
The Economic Times reports that RIL secured the coal blocks through a government e-auction. The investment is planned in three phases: up to Rs 3,000 crore for exploration and pilot from late 2026 to 2027, Rs 1.20 lakh crore in development from 2028-30, and Rs 1.50 lakh crore in production from 2030 onwards. The company estimates the project will create 3,000-5,000 direct jobs and 20,000-35,000 indirect livelihoods.
The project aligns with the National Coal Gasification Mission's target of 100 million tonnes of coal gasification by 2030. Sahi.com notes that successful execution could set a regulatory and technological precedent for India's coal gasification sector, which has historically faced high capital barriers and lack of commercial scale. Exploration activities are expected to begin in the current fiscal year.
Indian Opinion Analysis
The Economic Times frames the project as a government-aligned industrial milestone, highlighting its synergy with the National Coal Gasification Mission and potential to reduce import dependence. Sahi.com presents a market-oriented perspective, focusing on Reliance's strategic hedging and balance sheet strength while acknowledging exploration and commercial viability risks. Both sources agree on the headline investment figure and phased approach, but neither includes any critical or opposition views. A careful reader should note that the entire proposal hinges on successful exploration outcomes, a condition both sources mention but do not elaborate on in terms of technical or financial hurdles. The key number to watch is the exploration result, expected in late 2027.
Coverage: 2 sources, 2 neutral
Sources (2): economictimes.indiatimes.com (neutral report), sahi.com (neutral report)
This story was synthesised by AI from the 2 sources linked above. Methodology and corrections.
Updated: this story now draws on 2 sources.
