Coal ministry puts up 41 mines for auction

New Delhi: The coal ministry on Wednesday put up for auction 41 mines, comprising 20 conventional and 21 underground coal gasification (UCG) mines, pushing for utilisation of deep-seated coal reserves through gassification. It is the first time the government has put up for auction potential UCG mines, aiming to promote cleaner and more diversified uses of coal.

"Underground coal gassification technique allows for conversion of deep-seated coal to syngas. This results in less pollution, and industries can use this as feedstock, reducing imports of natural gas," said coal and mines minister G Kishan Reddy. "Coal gassification will not only provide clean energy to the industry, but also will be a big step for India towards a hydrogen economy."

The government has set a target of 100 million tonnes of coal gassification by 2030. Last year, it approved an outlay of ₹8,500 crore for promoting coal and lignite gassification projects for both public sector undertakings and the private sector.

The Ministry of Environment and Forest & Climate Change has exempted pilot underground coal gassification projects from the requirement of environmental clearance.

"If India wants to become viksit (developed) and become a $30 trillion economy, accelerated, efficient and cleaner and more sustainable use of coal resources is required," said Vikram Dev Dutt, secretary, coal ministry.

The 41 mines will be auctioned as part of the 14th round of commercial coal mine auctions, with 133 mines successfully auctioned till now under 12 rounds. The ministry expects to attract ₹41,000 crore in investments into these 133 mines, generating employment for more than 370,000 people.