Reliance’s ₹2.7 Lakh Cr Coal-to-Gas Bet Aims to Shield India from Energy Shocks
What Happened
Reliance Industries has proposed a ₹2.73 lakh crore investment over 30 years to build India’s first large-scale underground coal gasification (UCG) complex in Andhra Pradesh. The project aims to convert deep, hard-to-mine coal into syngas that can be used to produce hydrogen, methanol, ammonia, and synthetic natural gas, reducing India’s reliance on imported LNG and chemical feedstocks.
Key Takeaways
If commercially successful, the project could strengthen India’s energy security and cushion the economy from global fuel supply disruptions and price shocks. However, its success depends on proving the technology’s viability at scale and overcoming geological and commercial risks.