Reliance Proposes Rs 2.73 Trillion Coal Gasification Project
ECONOMY & POLICY

Reliance Proposes Rs 2.73 Trillion Coal Gasification Project

Reliance Industries shares rose after media reported the company proposed to invest Rs 2.73 trillion (Rs 2.73 tn) to develop an integrated underground coal gasification complex in Eluru district of Andhra Pradesh. The stock added 0.45 per cent to Rs 1313.35 as markets reacted to the size of the proposal, which the company plans to fund over a period of 30 years. The project is designed to tap deep coal reserves in the Chintalapudi and Recherla blocks to produce synthetic gas, commonly known as syngas. The initiative follows the acquisition of the blocks under the government’s commercial coal mining auctions earlier in 2026.

The proposal has been framed as a significant milestone in India’s clean energy transition and as a measure to reduce dependence on imported energy feedstock while supporting domestic chemical, methanol and synthetic fuel manufacturing. Project planners intend to begin exploration later in the year if preliminary findings are favourable. The scale and long duration of the investment mean execution will depend on technical results, environmental clearances and sustained capital allocation.

Reliance, India’s largest private sector company, operates in digital services, retail, oil-to-chemicals, exploration and production, new energy and consumer products. The company’s consolidated net profit rose 6.12 per cent year on year and 12.66 per cent quarter on quarter to Rs 231.96 billion (Rs 231.96 bn) in the June quarter of FY27, a figure that includes the share of profit from associates and joint ventures. Gross revenue increased 24.50 per cent year on year and 4.60 per cent quarter on quarter to Rs 3.40 trillion (Rs 3.40 tn) in the same quarter.

Market observers said the announcement reinforces a strategic push into new energy vectors while leveraging domestic resource bases to bolster local manufacturing capacity. Progress on the project will be assessed against exploration outcomes and regulatory approvals over coming years.

Reliance Industries shares rose after media reported the company proposed to invest Rs 2.73 trillion (Rs 2.73 tn) to develop an integrated underground coal gasification complex in Eluru district of Andhra Pradesh. The stock added 0.45 per cent to Rs 1313.35 as markets reacted to the size of the proposal, which the company plans to fund over a period of 30 years. The project is designed to tap deep coal reserves in the Chintalapudi and Recherla blocks to produce synthetic gas, commonly known as syngas. The initiative follows the acquisition of the blocks under the government’s commercial coal mining auctions earlier in 2026. The proposal has been framed as a significant milestone in India’s clean energy transition and as a measure to reduce dependence on imported energy feedstock while supporting domestic chemical, methanol and synthetic fuel manufacturing. Project planners intend to begin exploration later in the year if preliminary findings are favourable. The scale and long duration of the investment mean execution will depend on technical results, environmental clearances and sustained capital allocation. Reliance, India’s largest private sector company, operates in digital services, retail, oil-to-chemicals, exploration and production, new energy and consumer products. The company’s consolidated net profit rose 6.12 per cent year on year and 12.66 per cent quarter on quarter to Rs 231.96 billion (Rs 231.96 bn) in the June quarter of FY27, a figure that includes the share of profit from associates and joint ventures. Gross revenue increased 24.50 per cent year on year and 4.60 per cent quarter on quarter to Rs 3.40 trillion (Rs 3.40 tn) in the same quarter. Market observers said the announcement reinforces a strategic push into new energy vectors while leveraging domestic resource bases to bolster local manufacturing capacity. Progress on the project will be assessed against exploration outcomes and regulatory approvals over coming years.

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