Shares of Reliance Industries gained 0.45 per cent to Rs 1,314 in the early trade on Thursday after media reports stated the company’s proposed mega investment in an underground coal gasification project in Andhra Pradesh. The proposed development, estimated at around Rs 2.73 lakh crore, is expected to be spread over three decades.
The reported project in Eluru district will reportedly use deep coal reserves to manufacture synthetic gas, or syngas. If implemented as planned, the initiative could add another major dimension to Reliance Industries’ expanding energy and manufacturing portfolio.
The proposal also comes against the backdrop of of the relevant coal blocks through the government’s commercial coal mining auction process earlier this year.
Rs 2.73 Lakh Crore Investment Over 30 Years
According to media reports, Reliance Industries has proposed investing approximately Rs 2.73 lakh crore in the integrated underground coal gasification complex. The investment is expected to be deployed over a period of 30 years, indicating the long-term nature and scale of the proposed undertaking.
The project is reportedly planned in Andhra Pradesh’s Eluru district and would focus on exploiting deep-seated coal reserves that can be difficult to access through conventional mining methods.
Reliance’s reported proposal comes as the company continues to expand beyond its traditional oil and petrochemicals businesses into areas linked to energy, manufacturing and new technologies.
The proposed facility is expected to make use of coal resources located in the Chintalapudi and Recherla blocks. Media reports said Reliance acquired these blocks through the government’s commercial coal mining auctions conducted earlier in 2026.
Instead of relying solely on conventional coal utilisation, the reported project would seek to convert underground coal into synthetic gas. Syngas can serve as an important feedstock for several industrial applications, including the production of chemicals, methanol and synthetic fuels.
Exploration Could Begin Later This Year
The project remains at the proposal stage, with reports indicating that Reliance could begin exploration later this year if preliminary findings are encouraging.
The exploration phase is expected to play an important role in assessing the feasibility and potential of the coal reserves before the company moves ahead with the larger development. Given the scale of the proposed investment and its 30-year horizon, the findings from the initial assessment could be critical to subsequent decisions.