NEW DELHI – The Ministry of Coal has finalized agreements for four commercial coal mines, crucially incorporating provisions for Underground Coal Gasification (UCG) for the first time. This move signals a deliberate pivot towards extracting value from deeper and more difficult coal reserves, moving beyond traditional excavation methods. The deals, signed yesterday (April 28th), were awarded to Reliance Industries Limited and Axis Energy Ventures India Private Limited.
Reliance secured the Recherla and Chintalpudi Sector A1 mines, while Axis Energy clinched the Dip Extension of Belpahar and Tangardihi East blocks. These agreements were executed under the 14th round of commercial coal auctions, which specifically identified 21 blocks with gasification potential. The inclusion of UCG provisions aims to unlock energy from coal seams that are too deep, thin, or technically challenging for conventional mining, representing approximately 40% of India's coal reserves.
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The ministry stated that these accords are a "historic step" and a "transformative leap" in how India unlocks its coal reserves, aligning with goals to boost domestic value addition and reduce import dependency. The introduction of UCG provisions is intended to maximize domestic coal production while promoting cleaner and more efficient energy pathways.
Shift Towards Advanced Coal Utilization
The integration of UCG technology into commercial mining frameworks allows for the conversion of coal into a combustible gas, known as syngas, directly within the underground seams. This process bypasses the need for physical extraction and transportation of coal to processing plants. The ministry has also exempted pilot UCG projects from environmental clearance to expedite the technology's deployment.
Background: Expanding Commercial Mining
The 14th round of commercial coal mine auctions offered a total of 41 blocks across seven states, with Chhattisgarh and Odisha featuring the highest number of blocks. These auctions are part of a broader effort to enhance transparency, competition, and self-reliance in India's coal sector. With these four new agreements, the total number of Coal Mine Development and Production Agreements (CMDPAs) signed under commercial coal auctions now stands at 138, representing a peak rated capacity of 331.544 MTPA. The ministry has also launched digital platforms such as the Koyla Shakti Dashboard and the Coal Land Acquisition, Management, and Payment (CLAMP) Portal to streamline processes in the coal sector.
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