Reliance plans $4.6 billion coal gasification project in Andhra Pradesh, document shows

what happened

India's Reliance Industries intends to put about 430 billion rupees ($4.59 billion) into an underground coal gasification complex in the southern state of Andhra Pradesh, to be built in two phases. The plan appears in a government document seen by Reuters. The company had not yet replied to the news agency's request for comment.

According to the document, the project could eventually draw up to 2.7 trillion rupees over its lifetime and create around 5,000 direct and 35,000 indirect jobs. The technology turns deep coal seams into usable gas without conventional mining.

The first phase, costing about 30 billion rupees, covers exploration, geological assessments and pilot demonstrations. The bulk of the spending, around 400 billion rupees, would start only after the first phase succeeds and the necessary regulatory approvals are granted.

why it matters

For markets, this is a long-term signal of Reliance's push into energy. Progress depends on pilot results and approvals, so no immediate effect on coal or gas demand or prices should be expected. The project also joins a wave of large investments in the state, including Google's AI hub and Reliance's data centre plans.

market impact

Reliance Industries: long-term coal gasification project, no direct effect on commodity prices yet

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