Government to Launch First-Ever Auction of Coal Blocks for Underground Gasification: Rupinder Brar
In a landmark move aimed at advancing clean energy and resource efficiency, the Government of India is set to launch the first-ever auction of coal blocks for underground coal gasification (UCG), announced Rupinder Brar, Secretary of the Ministry of Coal.
Speaking at an industry event, Brar emphasized that the auction represents a strategic shift toward sustainable utilization of coal resources, aligning with India’s broader vision of energy transition and self-reliance in energy production.
“This will be the first time that coal blocks will be specifically auctioned for underground gasification. The Ministry is finalizing modalities and will soon release the list of identified blocks,” Brar said.
The move aims to leverage India’s vast coal reserves to produce syngas, which can be further converted into methanol, urea, ammonia, and other chemicals, thereby reducing dependency on imports of natural gas and petrochemicals.
Officials highlighted that the UCG process, which involves converting coal into gas while it remains underground, offers significant environmental benefits, as it minimizes surface disruption and reduces emissions compared to conventional coal mining.
The Ministry has identified several suitable coal-bearing regions across states like Chhattisgarh, Odisha, and Jharkhand for the first phase of auctions. Technical parameters, bidding conditions, and operational guidelines are being finalized in consultation with industry experts and scientific agencies.
The initiative also complements the government’s goal of achieving 100 MT coal gasification capacity by 2030, as outlined in the National Coal Gasification Mission.
Industry stakeholders have welcomed the announcement, calling it a game-changer for the sector. They believe the move will open up new investment opportunities, boost domestic manufacturing, and help India transition toward a low-carbon economy.
Brar reiterated the ministry’s commitment to fostering innovation and technology adoption in the coal sector, ensuring that India’s energy mix remains balanced, secure, and sustainable.