Come January, RIL to launch ‘Jamnagar of the East Coast’ with Andhra Coal Project
The company aims to complete its pilot project by mid-2028, running exploration and pilot work simultaneously
In January, Reliance Industries Ltd (RIL) plans to launch a project in Andhra Pradesh titled 'Jamnagar of the East Coast'. The company intends to start exploration activities in Eluru District, marking India's involvement in underground coal gasification (UCG). This comes after the Ministry of Coal initiated commercial coal mine bidding rounds in the previous year.
RIL aims to complete its pilot project by mid-2028, with exploration and pilot work happening concurrently. UCG is a novel method of coal utilization that converts the coal into synthetic gas directly within the underground seam, circumventing the need for traditional surface mining. The project will focus on the Chintalapudi and Recherla coal blocks.
The activity will commence in Chintalapudi first. The project will proceed in three phases, beginning with an initial investment of up to ₹3,000 crore during the exploration and pilot phase. If the pilot proves successful, RIL may consider further investments. Although coal has not been a major focus for RIL, the company's strategy is driven by a mandate from the top to ensure affordable energy and create new economic hubs on the east coast, similar to the successful 'Jamnagar' in western India.
RIL's existing refinery-cum-petrochemical complex, currently located in the west, will provide valuable experience and knowledge for this new venture. The UCG project was kickstarted in April 2026 when the Ministry of Coal signed production and development agreements with RIL for four coal mines under the 14th round of commercial auctions.
These included the Recherla and Chintalapudi Sector A1 mines. RIL plans to implement Controlled Retracting Injection Point (CRIP) gasification technology for the project and will also address resource and grid integration challenges. To support the heavy water requirements, a desalination plant will be set up at Machilipatnam, a coastal city in the Krishna District.
For power infrastructure, RIL will initially rely on the State grid during the pilot phase but will build a dedicated captive power plant eventually. While the final pricing for the synthetic gas remains uncertain, RIL is expected to offer a competitive price structure.
Written by urgent.news from Hindu BusinessLine's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
