Coal gasification would help tap into the 40% deep-seated coal reserves in the country which cannot be entirely mined using traditional methods, Coal Minister G. Kishan Reddy stated at the launch of the fourteenth round of commercial mines auction Tuesday. Underground coal gasification entails converting coal, present in deep-seated reserves, into synthetic gas or syngas (broadly, carbon monoxide and hydrogen rich gases), whilst the coal or lignite remains intact underground.
The ministry holds this method would contribute to reducing pollution emanating from traditional mining techniques, alongside helping reduce the existing dependence on imports of natural gas, among other petrochemicals.
Mr. Reddy stated in his address that the technique would not only provision clean energy to industries but also serve as a vital step for India towards becoming a hydrogen economy. Additionally, he noted coal gasification would contribute to ensuring “long-term sustainable future of mining, savings in logistics cost and spurring efficiency in the coal sector”.
In a first, of the 40 mines being put to auction in the latest round, 21 mines that are partially explored, would be offered that hold potential to be mined using the technique.
In his address, Vikram Dev Dutt, Secretary at the Coal Ministry informed that the mines in this category would be exempt from the requirement to have an environmental clearance during the pilot stages (of exploration). “They would only be required to receive the clearance when they scale up towards commercial operations,” he told reporters at the sidelines of the launch.
Overall, Mr. Reddy informed that a total of 133 coal mines has been auctioned across 12 rounds since its inception in 2020. They account for a cumulative peak rated capacity of about 276 million tonnes per annum (MTPA). He held they are expected to augur ₹41,00 crore in investments into the sector. The 13th tranche that put 14 coal mines to auction is ongoing.
Published – October 29, 2025 10:22 pm IST
