Zee Business Exclusive: Coal India ventures into underground coal gasification

Coal India, along with two private companies, is set to embark on underground coal gasification (UCG), a pioneering project in India. The pilot project, sanctioned with a budget of Rs 70 crore, aims to convert coal into syngas and chemicals, offering a promising alternative to traditional mining practices. By 2030, the ambitious target is to achieve 100 million tonnes of UCG.

This initiative is not just about innovation, but a strategic move towards energy self-sufficiency and reducing reliance on petroleum imports. With UCG, India aims to produce petroleum and petroleum products domestically, potentially cutting down on imports.

To kickstart the UCG process, coal mines will be auctioned off.

The Ministry of Coal and representatives from Coal India have already inspected UCG plants in Uganda, Australia, and South Africa, seeking insights and best practices to implement in India.

The Indian government is keen on commercialising UCG, signaling its commitment to leveraging indigenous resources for economic growth.

This move aligns with the broader vision of reducing import dependency and promoting self-reliance, particularly in the energy sector.

UCG could see the light of day as early as the first 100 days of Modi 3.0, indicating swift action on the government's part to harness alternative energy sources.

Guidelines for UCG implementation are expected to be finalised by May 15th, setting the stage for its rollout.

Moreover, revenue-sharing arrangements with states underscore the collaborative approach between the central and state governments in driving this transformative energy agenda forward.

As India takes strides towards a cleaner and more sustainable energy future, the foray into underground coal gasification marks a significant milestone in the country's energy landscape.