Reliance Industries plans to invest about Rs 43,000 crore ($4.59 billion) in two phases to build an integrated underground coal gasification complex in Andhra Pradesh, according to a government document seen by Reuters and reported on Thursday, November 12.

Source: Reuters, via The Hindu BusinessLine

Underground coal gasification turns deep coal reserves into usable gas in place, without conventional mining. CNBC-TV18 reported that Reliance will sign a memorandum of understanding with the Andhra Pradesh government for the complex, with the Andhra Pradesh Economic Development Board acting as the nodal facilitation agency, and that the project is linked to the Chintalpudi Sector A1 and Recherla coal blocks in Eluru district, which the Union coal ministry awarded to Reliance in April 2026.

Source: CNBC-TV18, via TradingView

The first phase, of about Rs 3,000 crore, will cover exploration, geological assessments and pilot demonstrations to establish the project's technical and commercial feasibility, the document showed. The second phase will proceed only after the first phase succeeds and the necessary regulatory approvals are received.

The project could eventually attract investments of up to Rs 2.7 lakh crore over its lifetime and generate around 5,000 direct and 35,000 indirect jobs, according to the document. Reliance did not immediately respond to Reuters' request for comment, so the company's own confirmation is still awaited.

Part of a wider Andhra investment wave

The proposal adds to a wave of major investments in Andhra Pradesh, where Google has committed $15 billion to build an AI hub and Reliance and its joint venture partners plan to invest $11 billion in data centre capacity. South Korean carmaker Kia's Indian unit also announced on Thursday plans to invest about $2 billion in an additional manufacturing plant in the state, Reuters reported.

What happens next depends on the pilot: only a successful first phase and regulatory clearances will unlock the much larger second-phase build-out.