"Coal India (CIL) is making an action plan. Under the plan, the PSU will have to come out with projects on coal bed methane, gasification (underground and surface), coal to liquid and polychemical," Coal Secretary Susheel Kumar told PTI.
Underground coal gasification (UCG) is extraction of energy from coal and lignite resources that are otherwise deemed uneconomical through conventional mining methods.
The plan of action, Kumar said, will be monitored by the coal ministry.
He is optimistic that the move will help the country reduce its emission intensity and dependence on petroleum and gas imports.
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CIL consultancy arm CMPDI recently sought applications from global firms on providing consultancy on formulating bid documents with regard to development of UCG projects.
The secretary had earlier said the domestic coal gas can be used as a feedstock for producing urea and other chemicals that can help limit the country's import bill by USD 10 billion in five years and cut carbon emission.