India Signs First Coal Agreements with Underground Gasification Provisions
Govt signs first UCG-enabled commercial coal block agreements in India
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The Indian Ministry of Coal has signed Coal Mine Development and Production Agreements (CMDPAs) for four coal mines, marking the first inclusion of Underground Coal Gasification (UCG) provisions. This initiative aims to enhance coal utilization efficiency and reduce dependence on imported fertilizers, with a projected annual revenue of ₹42,980 crore.
- 01First commercial coal agreements in India to include UCG provisions.
- 02Reliance Industries and Axis Energy Ventures won bids for four coal mines.
- 03Total peak rated capacity of the awarded mines is 331.544 million tonnes per annum.
- 04Expected annual revenue from these mines is ₹42,980 crore.
- 05UCG technology aims to improve coal resource utilization and support domestic production of fertilizers.
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On Tuesday, the Indian Ministry of Coal signed Coal Mine Development and Production Agreements (CMDPAs) for four coal mines, marking a significant milestone as the first commercial coal blocks awarded with provisions for Underground Coal Gasification (UCG). Reliance Industries Ltd secured the Recherla and Chintalpudi Sector A1 coal mines, while Axis Energy Ventures India Pvt Ltd won the Dip Extension of Belpahar and Tangardihi East coal mines, located in Andhra Pradesh and Odisha. The inclusion of UCG provisions allows for the conversion of coal into synthetic gas within the coal seam, eliminating conventional extraction methods. This technology is expected to enhance the country's coal resource base and promote cleaner energy use. The synthetic gas can be utilized in producing urea and ammonia, thereby reducing reliance on imported fertilizers. With these agreements, the total number of CMDPAs executed has reached 138, with a combined peak rated capacity of 331.544 million tonnes per annum. The ministry anticipates these mines will generate annual revenue of approximately ₹42,980 crore, attract ₹48,231 crore in capital investment, and create jobs for around 434,175 individuals. The introduction of UCG reflects the ministry's commitment to boosting domestic coal production and advancing energy security.
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The introduction of UCG technology is expected to enhance coal utilization efficiency, reduce reliance on imported fertilizers, and create significant employment opportunities in the regions where these mines are located.
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