Govt to Scrap Green Clearance Requirement for Underground Coal Gasification Pilot Projects

In a major policy shift aimed at accelerating clean coal technologies, the Government of India is set to do away with mandatory green clearance for pilot projects involving underground coal gasification (UCG). The move is intended to encourage faster experimentation and deployment of the technology in the country’s vast coal reserves.

According to officials from the Ministry of Coal, the exemption will apply only to pilot-scale projects undertaken for research, development, and feasibility studies, not for full-scale commercial operations. The ministry said the decision was taken to “promote innovation and reduce procedural delays” in developing environmentally safer coal utilization methods.

Underground coal gasification is an advanced process that converts coal into synthetic gas (syngas) while it remains underground, significantly reducing the environmental footprint compared to conventional mining. The gas produced can be used for power generation, chemical production, and hydrogen fuel.

Officials added that environmental safeguards will still be in place, with periodic monitoring by the Central Mine Planning and Design Institute (CMPDI) and the Central Pollution Control Board (CPCB).

Experts have welcomed the move, saying it could help India unlock difficult-to-mine coal reserves while aligning with the country’s energy transition goals. Pilot UCG projects are currently being explored in Jharkhand, Chhattisgarh, and Madhya Pradesh under the ministry’s innovation program.