Reliance Industries to invest ₹43,000 crore in Andhra Pradesh to develop coal gasification complex

Detailed summary

The overall potential investment could reach ₹2.70 lakh crore over 30 years. The project is expected to generate 5,000 direct and 35,000 indirect jobs in the state.

Reliance Industries Ltd will sign a memorandum of understanding with the Andhra Pradesh government to develop an integrated coal gasification complex over 30 years, according to people familiar with the development.

The project will be developed in phases and is subject to regulatory approvals. The first phase will focus on exploration, seismic data acquisition, geological assessment, and pilot demonstration. The estimated investment for phase one is expected to be ₹3000 crore, the people said, requesting anonymity.

The second phase of the project will begin after the completion of Phase 1 and submission of a detailed project report. The Phase 2 investment is planned at around ₹40,000 crore.

The overall potential investment could reach ₹2.70 lakh crore over 30 years. The project is expected to generate 5,000 direct and 35,000 indirect jobs in the state.

The Andhra Pradesh Economic Development Board (APEDB) will act as the nodal facilitation agency, assisting Reliance Industries with inter-departmental coordination with the state government on access to land, water, and power, and liaising with central ministries.

Reliance Industries was awarded the Chintalpudi Sector A1 and Recherla coal blocks in the Eluru district by the Union coal ministry.

Disclosure: Reliance Industries Ltd, which owns Jio, is the sole beneficiary of Independent Media Trust that controls Network18, the parent company of CNBCTV18.com.

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