Reliance Industries’ Andhra Pradesh plan starts with ₹3,000 crore for underground coal gas trials, while a ₹40,000 crore development phase depends on test results and permits, Reuters reported after reviewing a draft MoU dated Nov. 12.
The document describes ₹43,000 crore ($4.59 billion) in planned initial investment. It assigns ₹3,000 crore to geological work and pilot demonstrations, with the larger development phase contingent on successful trials and regulatory approvals. The proposal puts potential eventual investment at up to ₹2.7 trillion.
It estimates 5,000 direct jobs and 35,000 indirect jobs, but gives no hiring timetable.
India’s Ministry of Coal said Reliance secured the Recherla and Chintalpudi Sector A1 coal blocks under agreements signed April 28, 2026. The ministry described them as the first commercial coal mining contracts in India to include provisions for underground gasification. The process converts coal below ground into synthetic gas that can serve as an input for products such as urea, ammonia, methanol and synthetic fuels.
India’s Union Cabinet approved a ₹37,500 crore incentive scheme on May 13, 2026, for surface coal and lignite gasification. The Ministry of Coal has set a national target of 100 million tonnes of gasification capacity by 2030. The scheme announcement does not establish that Reliance’s underground project qualifies for support.
Reliance Chairman Mukesh Ambani said in a June shareholder statement that the company expects underground coal gasification to help replace imported liquefied natural gas. That is Reliance’s stated aim; the proposal does not show whether this project will achieve it.
Kia India said Nov. 12 that it had signed a memorandum of understanding with Andhra Pradesh for a separate proposed $2 billion Anantapur plant.
Exploration and pilot testing are the next stated steps. The draft gives no schedule for those activities or for the regulatory decisions tied to the larger phase.
