Reliance Industries to start coal gasification exploration in Andhra Pradesh
The company aims to complete its pilot project by mid-2028 using the Chintalapudi and Recherla blocks.
Reliance Industries Ltd (RIL) is scheduled to begin exploration activities in the Eluru District of Andhra Pradesh this January, according to BusinessLine. The company will focus on underground coal gasification (UCG) in the Chintalapudi and Recherla blocks.
The project will be carried out in three stages, with an initial outlay of up to ₹3,000 crore for the exploration and pilot stage. Work is expected to begin in the Chintalapudi block first.
RIL intends to finish its pilot project by mid-2028 by conducting exploration and pilot work at the same time. If the pilot proves to be commercially viable, the company will develop an investment proposal based on requirements, sources said.
The company plans to use Controlled Retracting Injection Point (CRIP) technology for the project. To meet water needs, RIL will establish a desalination plant at Machilipatnam in the Krishna District.
A source told BusinessLine that the strategic move aims to secure inexpensive energy and create new 'Jamnagars on the east coast'. RIL secured the Recherla and Chintalapudi Sector A1 mines following commercial coal mine bidding rounds by the Ministry of Coal.
For power, the company will first buy electricity from the State grid for the pilot. It plans to construct a dedicated captive power plant once full-scale production starts.