In a landmark milestone for India’s energy transition and self-reliance, the Ministry of Coal has executed Coal Mine/Block Production and Development Agreements (CMDPA) with successful bidders for four coal mines. This marks the first-ever tranche of commercial coal mines in the country to carry embedded provisions for Underground Coal Gasification (UCG). The historic step signals a transformative leap in how India envisions and unlocks the full value of its vast coal reserves.
The agreements were executed under the 14th round of commercial coal mining auctions, with Reliance Industries Ltd securing the Recherla and Chintalpudi Sector A1 mines, and Axis Energy Ventures India Pvt Ltd bagging the Dip Extension of Belpahar and Tangardihi East coal mines. These mines spans across Andhra Pradesh and Odisha with two being partially explored and two fully explored mines.
UCG represents a revolutionary approach to coal utilisation — one that converts coal into synthetic gas in situ, directly within the seam, without the need for conventional mining. This technology unlocks energy from deep, thin, or otherwise unworkable coal seams that traditional extraction methods cannot economically access, significantly expanding India’s exploitable energy resource base.
