Context: The Ministry of Coal (MoC) has issued the Draft Guidelines for Mining and Mine Closure Plan for Underground Coal and Lignite Gasification (UCG) Blocks, 2025.
The framework aims to facilitate cleaner energy production from India’s deep coal reserves while ensuring environmental and financial accountability.
About Underground Coal Gasification (UCG)
- Definition: UCG is an in-situ process that converts coal into syngas (a mixture of hydrogen, carbon monoxide, methane, and CO₂) by injecting oxidants underground.
- Objective: To utilise unmineable coal seams lying too deep for conventional mining through a cleaner and controlled process.
- By-products: Syngas can be used for power generation, chemical synthesis, and hydrogen production, reducing import dependence on fossil fuels.
Key Provisions of the Draft Guidelines
1. Pre-Project Feasibility
- A pilot feasibility study by an accredited technical institution is mandatory before project approval.
- The study will assess geological suitability, resource viability, risk parameters, and environmental impact.
2. Environmental Safeguards
- Only coal seams below 300 metres and in low-permeability strata will be eligible.
- Projects are prohibited in seismic or eco-sensitive zones to prevent groundwater contamination and land subsidence.
- Emphasis on optimal syngas yield, minimal waste, and sustainable land use.
3. Financial Accountability
- A Mine Closure Fund must be established in an escrow account prior to operations.
- Base contribution: ₹50,000 per hectare, indexed to the Wholesale Price Index (WPI).
- Fund release: Up to 75% permitted after verified progressive closure.
- Penalty: Non-compliance may lead to licence forfeiture or revocation.
4. Institutional Oversight
- The Coal Controller Organisation will evaluate and approve projects.
- A Technical Committee comprising experts from the MoC, DGMS, and Ministry of Petroleum & Natural Gas will advise on standards and compliance.
- The Secretary (Coal) will serve as the appellate authority for grievance redressal.
Significance
- Promotes energy self-reliance under Atmanirbhar Bharat by tapping domestic reserves sustainably.
- Reduces carbon intensity compared to open-cast coal mining.
- Encourages technological innovation and supports India’s National Hydrogen Mission through syngas utilisation.
Challenges Ahead
- High upfront costs for pilot studies and closure funds.
- Regulatory complexity across ministries.
- Need for real-time monitoring of subsurface gasification reactions to avoid ecological hazards.
Way Forward
- Establish model UCG pilot projects in Jharkhand and Chhattisgarh.
- Adopt public-private partnerships (PPPs) for technology transfer.
- Integrate AI-based monitoring for real-time environmental assessment.