Cabinet has approved a policy framework for development of underground coal gasification (UCG) in coal and lignite bearing areas in India.
Decision in this regard was taken by Union Cabinet Committee meeting chaired by the Prime Minister Narendra Modi in New Delhi.
What is Underground Coal Gasification (UCG)?
- UCG is a method of extraction of energy from coal/lignite resources which are otherwise regarded as uneconomical to work through conventional mining methods.
- It is mainly an industrial process which converts coal into product gases such as methane, hydrogen, CO and CO2 that are combusted for electricity generation.
- The gasification process is carried out in non-mined coal seams using injection of oxidants which brings the product gas to surface through production wells drilled from the surface.
UCG Policy Framework
- The UCG policy framework has been framed in line with the existing policy for Coal Bed Methane (CBM) development on revenue sharing basis.
- A policy on the lines broadly similar to the existing policy for coal bed methane (CBM) development on revenue sharing basis will be adopted for offering the blocks through competitive bidding
- Development of UCG is envisaged to provide for energy security. An Inter-Ministerial Committee under the Ministry of Coal with members from concerned ministries will be responsible for identification of the areas, deciding about blocks to be put to bidding or awarding them to PSUs on nomination basis.
- Central Mine Planning and Design Institute Limited (CMPDIL) will be the nodal agency for all business related proposals and regulations.