Reliance Industries plans to invest around Rs 43,000 crore in Andhra Pradesh to build a coal gasification complex, a state filing shows.

Sources reported the plan on 12 November after seeing the document.

Reliance did not immediately comment, so the company has not confirmed the details. The project would use underground gasification.

Instead of digging coal out of the ground, the company would turn deep coal beds into gas while the coal stays below the surface, then bring that gas up for use.

The money will go in two phases. The first, worth about Rs 3,000 crore, covers exploration, geological studies and pilot tests. Its job is to show whether the idea works, both technically and commercially.

Phase two is far bigger, at about Rs 40,000 crore to start with. It will go ahead only if phase one succeeds and regulators give the green light.

Over its full life, the project could draw as much as Rs 2.7 lakh crore of investment. The document also points to around 5,000 direct and 35,000 indirect jobs.

Sources, citing people familiar with the matter, said Reliance will sign an agreement with the state government to develop the complex over 30 years.

The state’s Economic Development Board would help with land, water, power and approvals. The plan builds on moves Reliance made earlier this year.

The company won the Chintalapudi and Recherla coal blocks in Eluru district through coal ministry auctions.

In August, reports said it had proposed a Rs 2.73 lakh crore investment over 30 years for the same complex. The two blocks hold an estimated 3.13 billion tonnes of coal.

Andhra Pradesh is lining up other large investments too. Google has committed $15 billion to an AI hub, and Reliance and its partners plan $11 billion for data centre capacity.

Kia’s Indian unit also said on Thursday that it will invest about $2 billion in a new plant in the state.

For now, the Rs 43,000 crore figure is a plan. Phase two depends on what the pilot shows and on approvals still to come.

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