The two-phase project aims to convert deep coal reserves into gas and could create 40,000 total jobs.
Reliance Industries plans to invest approximately Rs 43,000 crore ($4.59 billion) to develop an integrated underground coal gasification complex in Andhra Pradesh, according to a government document seen by Reuters, as reported by the Economic Times.
The proposed project intends to use underground gasification technology to transform deep coal deposits into usable gas, bypassing the need for traditional mining methods.
The investment is structured in two stages. The first phase involves an outlay of about Rs 3,000 crore for geological assessments, exploration, and pilot demonstrations to test technical and commercial viability.
The second phase, which requires an initial investment of around Rs 40,000 crore, will only move forward if the first phase succeeds and necessary regulatory approvals are received.
A government document indicates the project could eventually attract up to Rs 2.7 trillion in lifetime investments and generate roughly 5,000 direct and 35,000 indirect jobs.
This proposal comes alongside other major investments in the state, including a $15 billion AI hub by Google, $11 billion in data centre capacity by Reliance and its partners, and a $2 billion manufacturing plant by Kia's Indian unit.
