New Delhi: The Ministry of Coal on Tuesday signed coal mine agreements with provisions for Underground Coal Gasification, marking a first in India’s commercial mining sector.
Officials executed the agreements under the 14th round of commercial coal auctions. Reliance Industries Limited secured the Recherla and Chintalpudi Sector A1 mines. Axis Energy Ventures India Private Limited won the Dip Extension of Belpahar and Tangardihi East blocks.
These mines are located in Andhra Pradesh and Odisha. Two are fully explored, while the remaining two are partially explored. As a result, authorities aim to expand resource utilisation through advanced methods.
Coal mine agreements introduce UCG technology use
The Ministry said the new coal mine agreements include provisions for Underground Coal Gasification. This method converts coal into synthetic gas within the seam without traditional mining.
Therefore, UCG enables extraction from deep or difficult coal deposits. It also improves efficiency and reduces the need for surface mining operations.
Officials said the move would strengthen energy security and reduce import dependence. The syngas produced can support fertiliser production, including urea and ammonia. In addition, it can serve as feedstock for chemicals, methanol, and synthetic fuels.
The Ministry noted that 138 mines have now been awarded under commercial auctions. These projects together have a peak rated capacity of 331.544 MTPA.
They are expected to generate annual revenue of about ₹42,980 crore. Moreover, investments worth ₹48,231 crore are likely, along with employment for over 4.34 lakh people.
Officials said the initiative supports domestic coal production and long-term energy goals. At the same time, it promotes adoption of cleaner technologies in the sector.
