Reliance Power subsidiary Reliance Coal Resources will invest $5bn to develop projects in South Sumatra and Jambi, Indonesia.
The funds will be used to develop coal mines and related infrastructure in the provinces.
The $3.5bn project in South Sumatra will include a two-billion-ton coal mine, a 200km railway line, a port and a 2000MW power project.
The project in Jambi, estimated to cost $1.5bn, will consist of a coal mining unit, a port, railway line and a small power plant.
Coal produced from the mines will be used for Reliance’s 2,000MW project in Indonesia and exported to Reliance's Krishnapatnam Ultra Mega Power Project in Andhra Pradesh, India.