Reliance Industries Plans ₹3,000 Crore Underground Coal Gasification Pilot in Eluru, Andhra Pradesh; Launch Targeted for January 2027
Reliance Industries Ltd (RIL) is preparing to launch an underground coal gasification (UCG) pilot project in Andhra Pradesh’s Eluru district in January 2027. The company aims to complete the pilot by mid-2028 and plans to develop the project in three phases. RIL expects to invest up to ₹3,000 crore in the exploration and pilot phase, which will run simultaneously.
The project will use coal resources from the Chintalapudi and Recherla blocks. Exploration will begin at Chintalapudi, followed by Recherla. RIL plans to use Controlled Retracting Injection Point (CRIP) technology. It is working on grid connectivity and the supporting infrastructure for the pilot.
RIL secured the Recherla and Chintalapudi Sector A1 coal mines in the 14th round of commercial coal auctions. The production and development agreements were executed in April 2026. The round included India’s first tranche of commercial coal mines with provisions for underground coal gasification.
For water supply, RIL plans a desalination plant at Machilipatnam in Krishna district. The pilot will draw electricity from the state grid. If the project moves to full-scale commercial production, RIL plans a dedicated captive power plant.
RIL will prepare a fresh investment proposal if the pilot shows encouraging technical and commercial results. A final pricing structure for the synthetic gas has not been set.
