Govt prepares draft policy on underground coal gasification

A draft policy for the development of underground coal gasification (UCG) from unexplored coal and lignite bearing areas in the nation has been formulated, Parliament was informed today.
"With the objective to develop UCG, the ministry of coal has formulated a draft policy for UCG for approval of the government," Coal and Power Minister Piyush Goyal said in a reply to Rajya Sabha.
UCG is a clean coal technology and provides for extracting energy from the coal seams which cannot be mined through known mining technology. Successful testing and implementation of this technology is Indian conditions would help in providing energy security, he said.

Further, Goyal said, UGC is one of the notified end uses for allotment of coal blocks through bidding.
Five lignite blocks and two coal blocks have been identified earlier for UCG purposes. Besides, CIL has also identified two coal blocks or UCG in their command area, the minister added.
"... Production of syngas through Coal Gasification (Underground and Surface) and coal liquefaction have been notified as end uses for the purpose of Coal Mines (Nationalisation) Act. 1973 and Mines and Minerals (Development & Regulation) Act, 1957," Goyal had earlier said.
The government had earlier said that India should explore using coal gasification as feedstock to produce chemicals and petrochemicals in order to increase domestic output of these energy products.