In a first, 21 mines with underground coal gasification potential up for grabs

The Central government on October 29 announced the auction of 21 coal mines with the potential to harness underground gasification of the fossil fuel - a first for the country.

The 21 mines having the potential of underground coal gasification has been launched as part of the 14th round of commercial coal mine auctions. On September 18, Moneycontrol was the first to report that the government is planning to introduce Underground Coal Gasification (UCG) in its next round of commercial coal mine auctions.

"One of the most significant features of this tranche of auctions is the focus on Underground Coal Gasification (UCG), which is an innovative technology being promoted for the first time in the auction process. Nearly 40 percent of India’s coal reserves lie deep underground, beyond the reach of conventional mining methods. UCG will help tap such mines without the need to even mine out the coal," said Union Minister of Coal and Mines, G. Kishan Reddy.

Under the 14th Round, a total of 41 coal mines have been offered, of which 21 mines possess UCG potential, opening new avenues for the underground gasification of deep-seated coal reserves. Of these 41 mines, 20 are fully explored and 21 are partially explored, offering a balanced mix of opportunities for investors and developers. The round includes five mines under the Coal Mines (Special Provisions) Act, 2015 (CMSP) and 36 under the Mines and Minerals (Development and Regulation) Act, 1957 (MMDR).