Reliance Industries to build an integrated underground coal gasification complex in Andhra Pradesh in two phases at a cost of around Rs. 43,000 crore ($4.59 billion) is planned to be invested. According to a Reuters report, the project, over its lifetime, will cost Rs. 2.7 lakh crore in investment and create around 5,000 direct and 35,000 indirect jobs.
These companies are also investing
The proposal is another step in a series of major investments taking place in Andhra Pradesh. Earlier, Google has pledged to invest $15 billion to build an AI hub there, and Reliance and its joint venture partner plan to invest $11 billion in data center capacity. South Korean carmaker Kia’s Indian unit also announced on Thursday that it will invest nearly $2 billion to set up another manufacturing plant in the state.
Plan to make gas from coal
Reliance’s proposed project in Andhra Pradesh will use ‘underground gasification’ technology. Through this, coal reserves present under the ground can be converted into useful gas without conventional mining. The company in the first phase will invest approximately Rs. 30 billion is planned to be invested. This will include exploration, geological assessment and pilot demonstration to determine the technical and commercial feasibility of the project. In the second phase, there will be an initial investment of around 400 billion rupees. This phase will commence only after the first phase is successfully completed and all necessary regulatory approvals are received.
