Reliance Industries proposed a ₹2.73 lakh crore investment for India’s first integrated Underground Coal Gasification (UCG) complex. The company plans to execute this project over a 30-year period. The facility will be located in the Eluru district of Andhra Pradesh.
The project targets deep coal reserves in the Chintalapudi and Recherla blocks. These deposits are currently considered too deep and uneconomical for conventional mining techniques.
Reliance will deploy the investment in phases. Initial exploration will determine the commercial viability of the reserves before full-scale development begins.
UCG technology converts deep-seated coal into synthetic gas, known as syngas. This material serves as a versatile feedstock for producing chemicals, fertilizers, and fuels.
The initiative aims to reduce India’s dependency on energy imports. The project aligns with Reliance’s long-term strategy for energy diversification.