Reliance Proposes ₹2.73 Lakh Crore, 30-Year Underground Coal Gasification Complex In Eluru, Andhra Pradesh
Reliance Industries Limited (RIL) has submitted a proposal to the Andhra Pradesh government to develop an integrated Underground Coal Gasification (UCG) complex in Eluru district, involving a planned investment of approximately ₹2.73 lakh crore over 30 years. If developed, the project would mark India's first venture of its kind.
The project will utilise the Chintalapudi and Recherla coal blocks, which Reliance recently secured through an e-auction conducted by the Union Ministry of Coal. Together, the two blocks are estimated to hold 3,130.61 million tonnes of coal reserves, with the Recherla block alone spanning about 5,500 acres and containing an estimated 2,225.67 million tonnes of G-13 grade coal. The coal deposits lie at depths exceeding 600 metres, making conventional mining commercially unviable, which has led Reliance to opt for UCG technology instead.
UCG converts coal into combustible synthesis gas (syngas) directly underground, without large-scale excavation. The resulting syngas, composed primarily of hydrogen and carbon monoxide, can be processed into hydrogen, methanol, ammonia and synthetic natural gas, serving as feedstock for fertiliser, chemical and power-generation applications.
Reliance plans to develop the project in phases. The initial phase involves an investment of up to ₹3,000 crore between Q3 2026 and Q4 2027, focused on exploration and pilot-scale testing to evaluate geological conditions, assess UCG technology performance and determine commercial viability. Subsequent development and commercial production phases, representing the bulk of the proposed outlay, would follow only if the pilot phase succeeds.