Reliance Industries Emerges As Key Bidder In Coal Gasification Mine Auctions
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- Last Updated: 24 Dec 2025 at 12:37 PM IST
Reliance Industries is one of the leading companies bidding in the Government of India’s latest 41 coal block auctions for the purpose of supporting the central government’s initiative to convert India’s domestic coal resources to synthetic gas through coal gasification at selected mines in Odisha, Chhattisgarh, and Andhra Pradesh.
In support of the Government of India, Reliance will accelerate the process of producing synthetic gas from India’s domestic coal resources, ultimately decreasing India’s dependence on imported fuels while at the same time enhancing the production of cleaner fuel products.
Reliance’s investments in coal gasification also provide an avenue to further diversify its energy product offerings to include hydrogen and synthetic gas (syngas), and increasing the volume of both high-value and lower carbon energy products in its overall product portfolio.
But the question remains: what are the implications for energy security in India and Reliance’s evolving portfolio?
How Did The Auction Participation Unfold?
Reliance placed aggressive bids on several blocks that are suitable for developing gasification technology, converting coal into syngas used in making fuels and chemicals with fewer emissions compared to traditional coal burning. Auctions are focused on the use of cleaner products, and major corporations supporting India's goal of achieving self-reliance will be involved with these blocks.
As a result of Chhattisgarh and Andhra Pradesh blocks complementing their current energy infrastructure, Reliance has the potential to develop integrated supply chains. This is evidence of the company's belief in the viability of gasification in the current climate of increasing pressures related to achieving global net-zero emissions. Through resource allocation strategies within the government policy framework for encouraging private investment into gasification, public-private partnerships will form as a result of these planned strategic resource allocation strategies.
Gasification's Strategic Role
Strategically, gasification plays a critical role in utilising India's coal reserves cleanly and producing syngas for use as feedstock in hydrogen, methanol, and fertiliser production, reducing direct emissions from burning coal. With its extensive knowledge in petrochemicals, Reliance can deploy gasification on a large scale.
Gasification will also reduce our dependence on Liquefied Natural Gas (LNG) imports and petroleum products, thus helping to provide more affordable energy.
As Reliance produces syngas within India, it guarantees a secure supply of feedstock regardless of global price variability and creates an exciting future for Reliance to take the lead on the development of coal-to-chemical processes.
Energy Transition and Diversification
Reliance has demonstrated a commitment to the energy transition in India by committing to the use of carbon capture and storage (CCS) technology to support the use of fossil fuel assets in conjunction with renewable energy sources.
Reliance's ongoing participation as a significant player in the resource development sector indicates the commitment of private sector organisations to the successful adoption of policy changes aimed at promoting the use of value-added coal products, and establishing gasification centres in the states of Odisha, Chhattisgarh, and Andhra Pradesh with Reliance as the leading operator.
With Reliance being awarded several coal gasification auction blocks across these three states, the industry needs to consider how quickly this capacity will be converted into operational syngas and begin supplying India with cleaner sources of energy for its industrial growth.
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