India Unveils Underground Coal Gasification in Latest Coal Mine Auction Round

2 min read     Updated on 30 Oct 2025, 12:05 AM
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Overview

India's 14th Round of Commercial Coal Mine Auctions introduces Underground Coal Gasification (UCG) for 21 out of 41 offered mines. UCG aims to access 40% of India's deep underground coal reserves. The government exempts pilot UCG projects from environmental clearance to accelerate adoption. Additionally, two digital platforms, Koyla Shakti Dashboard and CLAMP Portal, were launched to enhance efficiency in the coal sector. The auction builds on previous rounds, with 133 mines auctioned to date.

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India has taken a significant step forward in its coal mining sector by introducing provisions for Underground Coal Gasification (UCG) in its 14th Round of Commercial Coal Mine Auctions. This move marks a new era in the country's approach to harnessing its vast coal reserves, particularly those that lie deep underground.

Key Highlights of the 14th Round of Commercial Coal Mine Auctions

Feature Details
Total Coal Mines Offered 41
Mines with UCG Potential 21
Fully Explored Mines 20
Partially Explored Mines 21
Mines under CMSP Act 5
Mines under MMDR Act 36

The introduction of UCG is particularly noteworthy as it addresses a crucial challenge in India's coal mining sector. According to the announcement, approximately 40% of India's coal reserves are located deep underground, beyond the reach of conventional mining methods. UCG technology offers a potential solution to access these otherwise inaccessible reserves.

Underground Coal Gasification: A Game-Changer

UCG is a process that converts coal into gas while it's still in the ground. This technology could revolutionize how India utilizes its deep-seated coal reserves, potentially increasing the country's energy output while reducing the environmental impact associated with traditional coal mining.

To expedite the implementation of UCG technology, the government has exempted pilot UCG projects from environmental clearance. This move is expected to accelerate the adoption and testing of UCG in India's coal sector.

Digital Initiatives in the Coal Sector

Alongside the auction announcement, Union Minister G. Kishan Reddy launched two digital platforms aimed at enhancing efficiency and transparency in the coal sector:

  1. Koyla Shakti Dashboard: This platform integrates the entire coal value chain, promoting transparency in operations.

  2. CLAMP Portal: Designed to streamline and improve land acquisition processes in the coal sector.

These digital initiatives underscore the government's commitment to modernizing and optimizing the coal mining industry.

India's Coal Auction Progress

The Ministry of Coal has made significant strides in coal mine auctions:

Auction Details Numbers
Total Rounds Completed 12
Total Mines Auctioned 133
Peak Rated Capacity 276 MTPA

The introduction of UCG in the 14th round builds upon this progress, potentially opening up new avenues for coal extraction and utilization in India.

As India continues to balance its energy needs with environmental concerns, the introduction of UCG and the ongoing digitalization of the coal sector represent important steps towards a more efficient and potentially cleaner use of the country's coal resources. However, the long-term environmental implications of UCG will need to be carefully monitored and assessed as the technology is implemented.

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