The government is preparing a draft policy on underground coal gasification, Coal and Power Minister Piyush Goyal said today.
"A draft policy is under formulation for development of Underground Coal Gasification from unexplored coal and lignite bearing areas in the country," Goyal said in a written reply to the Lok Sabha.
Underground coal gasification (UCG) is a method of converting coal still in the ground to a combustible gas that can be used for various uses, including power generation.
"Further, 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 said.
Two coal blocks-- Yellendu (Dip Side) in Telangana and Bandha-Singrauli Main Basin in MP--and five lignite blocks have been identified for offer for development of UCG, he said.
The lignite mines are Sindhari West, Chokla North, Nimbalkot and Nagurda in Barmer, Rajasthan and Dungra in Surat, Gujarat.
Vastan Lignite block in Gujarat has been identified for UCG purpose for government companies in the state and the applications for the same have been invited, Goyal said.
Coal India Ltd (CIL) is also contemplating to develop UCG projects within its command area. Two such blocks are Kaitha in Ramgarh Coalfield in Central Coalfields Ltd, Jharkhand and Thesgora "C" in Pench-Kanhan Coalfield in Western Coalfields Ltd, Madhya Pradesh have been identified for taking up UCG.
"Action is being taken for commercial development of UCG in the aforementioned," Goyal said.
