Reliance Industries (RIL) shares gained over 1% on Monday, 1 June, after reports indicated that the company has partnered with state-owned NLC India Ltd (NLCIL) to explore an underground lignite gasification project in Gujarat.
According to a PTI report citing sources, NLCIL and Reliance Industries have signed an agreement to evaluate the feasibility and technical viability of converting lignite reserves into gas through underground gasification technology.
The proposed project will assess the potential of two lignite blocks owned by NLC India in Gujarat. Preliminary technical studies are currently underway, with Reliance contributing its expertise in gasification technologies, the report added.
The initiative arises in response to worries about domestic gas shortages and the continuing global fuel crisis. If proven feasible, the project could produce synthesis gas for industrial use, providing a local fuel alternative and reducing India’s reliance on imported liquefied natural gas (LNG).
Furthermore, this partnership is anticipated to bolster India’s wider energy security goals by diversifying energy sources and improving the use of domestic lignite reserves.
According to a PTI report, NLC India is developing a ₹4,394-crore lignite-to-methanol plant at Neyveli, Tamil Nadu, expected to be commissioned next year. The project aligns with the Centre’s push for coal gasification, following the Cabinet’s approval of a ₹37,500-crore scheme to promote coal and lignite gasification and achieve the target of gasifying 100 million tonnes by 2030.
Dividend Record Date
RIL has set 5 June, as the date for determining which shareholders are entitled to the final dividend for FY26. The board of the company has recommended a final dividend of ₹6 per equity share for the fiscal year ended 31 March 2026. This proposal will require shareholder approval at the forthcoming Annual General Meeting (AGM).
