The Ministry of Coal on Tuesday signed Coal Mine Development and Production Agreements (CMDPAs) with the successful bidders for four coal mines under the 14th round of commercial coal mine auctions, marking the first time that commercial coal blocks in India have been awarded with embedded provisions for Underground Coal Gasification (UCG).

Reliance Industries Ltd secured the Recherla and Chintalpudi Sector A1 coal mines, while Axis Energy Ventures India Pvt Ltd won the Dip Extension of Belpahar and Tangardihi East coal mines. The four mines are located across Andhra Pradesh and Odisha, with two fully explored and two partially explored.

The inclusion of UCG provisions in these agreements is a first for India’s commercial coal mining programme. UCG enables coal to be converted into synthetic gas within the coal seam itself, eliminating the need for conventional extraction and allowing the utilisation of deep, thin or otherwise economically unviable coal deposits.

According to the ministry, the move is aimed at expanding the country’s exploitable coal resource base while promoting cleaner and more efficient coal utilisation. The synthetic gas produced through UCG can be used as a feedstock in the manufacture of urea and ammonia, reducing dependence on imported fertilisers, and can also support domestic production of methanol, dimethyl ether and synthetic fuels.

With the signing of these four agreements, the total number of CMDPAs executed under commercial coal mine auctions has risen to 138. These mines together have a peak rated capacity of 331.544 million tonnes per annum.

The ministry said the 138 mines are expected to generate annual revenue of about Rs 42,980 crore, attract capital investment of Rs 48,231 crore, and create direct and indirect employment for around 434,175 people.

The Coal Ministry said the introduction of UCG provisions reflects its focus on boosting domestic coal production, enhancing value addition, strengthening energy security and promoting advanced coal utilisation technologies. 

Source: Business Standard 

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