New Delhi: In a strategic move to fast-track the deployment of Underground Coal Gasification (UCG) technology in India, the Ministry of Coal has announced that pilot UCG projects will be exempted from seeking environmental clearance (EC). This decision, unveiled as part of the 14th round of commercial coal mine auctions, aims to support the government’s push for cleaner coal utilization and enhance technological innovation in the energy sector.
UCG Pilot Projects: A Key Step Toward Sustainable Energy
The announcement reflects the government’s commitment to adopting innovative technologies to harness coal resources more efficiently while minimizing environmental impact. UCG is a process that involves converting deep underground coal seams into gas without the need for conventional mining. This technology has the potential to unlock approximately 40 percent of India’s coal reserves, which lie deep underground and are currently inaccessible through traditional mining methods.
Explaining the rationale behind the move, Coal Secretary Vikram Dev Dutt stated that the Ministry of Environment, Forest and Climate Change (MoEFCC) has agreed to exempt the pilot phase of UCG projects from environmental clearance requirements. “For the pilot phase, the MoEFCC has agreed to not require an EC,” Dutt said, emphasizing that this exemption would expedite the implementation of UCG technology.
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14th Round of Commercial Coal Mine Auctions: UCG Integration
In a landmark development, the 14th round of commercial coal mine auctions launched by the Ministry of Coal now includes 21 coal mines with UCG potential. This is the first time that UCG has been integrated into the auction process, signaling the government’s commitment to exploring cleaner energy solutions and more efficient coal utilization.
The auction offers 41 coal mines—comprising 20 fully explored and 21 partially explored mines. Of these, five mines are under the Coal Mines (Special Provisions) Act, 2015, and 36 mines fall under the Mines and Minerals (Development and Regulation) Act, 1957. The inclusion of UCG potential mines marks a significant shift toward sustainable energy practices and paves the way for future technological advancements in the coal sector.
Coal Minister Emphasizes UCG’s Role in India’s Energy Future
During the auction launch, Union Minister of Coal G Kishan Reddy highlighted the importance of UCG in India’s quest for energy independence. “Nearly 40 percent of India’s coal reserves are deep underground and cannot be accessed through traditional mining,” Reddy pointed out, underscoring UCG’s vital role in tapping into these inaccessible reserves.
Reddy also mentioned that under Prime Minister Narendra Modi’s leadership, the coal sector has undergone a comprehensive transformation—from reform to performance and from performance to transformation. He reiterated that UCG technology could play a pivotal role in improving the coal sector’s sustainability, boosting energy security, and reducing dependence on coal imports.
Launch of Digital Platforms to Improve Efficiency
In addition to the UCG initiative, the Coal Ministry launched two digital platforms—Koyla Shakti Dashboard and Coal Land Acquisition, Management, and Payment (CLAMP) Portal—to further streamline coal sector operations.
- Koyla Shakti Dashboard integrates the entire coal value chain, from mining to market, into a single digital platform, enabling real-time coordination between coal companies, railways, ports, and end-users. This will significantly enhance logistics efficiency and reduce operational delays.
- CLAMP Portal is designed to simplify the land acquisition, compensation, and rehabilitation processes, ensuring better transparency and ease of doing business in the coal sector.
Both platforms aim to foster greater accountability, transparency, and operational efficiency across the coal ecosystem.
Government’s Push for Reforms and Private Sector Participation
Additional Secretary Rupinder Brar emphasized that the government’s “Reform, Perform, and Transform” approach has driven the success of recent coal auctions. She stated that the response to the 13th round of auctions demonstrated strong investor confidence in the sector, and the 14th round continues this momentum by integrating advanced technologies and data-driven governance.
Meanwhile, Additional Secretary Sanoj Kumar Jha reaffirmed that commercial mining remains central to ensuring India’s energy security and meeting the goals of Aatmanirbhar Bharat (self-reliant India). He added that initiatives like Koyla Shakti and CLAMP are setting the stage for a more transparent, accountable, and competitive coal sector.
Conclusion: A Game-Changer for India’s Energy Sector
The decision to exempt pilot UCG projects from environmental clearance is a significant step in India’s journey toward sustainable coal utilization and energy security. By tapping into deep underground coal reserves and advancing cleaner technologies like UCG, the country can unlock vast untapped resources and reduce the environmental footprint of coal extraction.
