Question : UNDERGROUND COAL GASIFICATION

(a) the present status of the Underground Coal Gasification (UCG) Technology developed in the country for meeting the future energy needs;

(b) the details of the coal and lignite blocks identified so far in the country, for this purpose;

(c) whether the Government has awarded contracts to Joint Venture/ Multi-national companies for execution of these projects;

(d) if so, the details thereof; and

(e) the steps taken/proposed to be taken by the Government to popularise this technology in the country?

MINISTER OF COAL IN THE MINISTRY OF COAL ( SHRI SRIPRAKASH JAISWAL )

(a) to (e): A statement is laid on the Table of the House.

Statement referred to in reply to parts (a) to (e) in respect of Lok Sabha Starred Question No.39 for reply on 6.8.2013 asked by Dr. PadmaSinha Bajirao Patil

(a ) to (e) : The Underground Coal Gasification (UCG) Technology has not been commercially established in India.

As per the recommendations of Integrated Energy Policy Committee of the Planning Commission and Expert Committee on Road Map for Coal Sector Reforms, development of Underground Coal Gasification (UCG) is under active consideration of the Govt.of India for providing much needed energy security in the country. The process of extraction of UCG is environment-friendly and offers a potential mean of extracting energy from deep seated coal deposits where mining is not feasible at present due to techno-economic considerations.

Since UCG is relatively a new area in the country, MoC has earlier constituted a committee in August 2005 under the chairmanship of the then Chairman –cum- Managing Director (CMD) of Central Mine Planning and Design Institute Limited (CMPDI) with other members from Oil and Natural Gas (ONGC), Director General of Mines Safety (DGMS), Director General of Hydracarbon (DGH), Mineral Exploration Corporation Limited (MECL), Neyveli Lignite Corporation (NLC) etc. to study various aspects of UCG and suggest a regulatory frame work for development of UCG in the country. The report of the committee was submitted in August 2006. To expedite the UCG development in India, Ministry of Coal (MoC) has issued Gazette Notification No.868 dt.12th July 2007 wherein the production of syngas obtained through coal gasification (Underground and Surface) and coal liquefaction to be end uses for the purposes of Coal Mines Nationalization Act. This notification has paved way for commercial development of UCG.

Subsequently, Ministry of Coal on 13.07.2009 issued Guidelines for carrying out Underground Coal Gasification and Guidelines for allocation of captive blocks for Underground Coal Gasification (UCG) wherein conditions of allotment and Guidelines for carrying out Underground Coal Gasification operations were specified. Central Mine Planning and Design Institute Limited (CMPDI) in consultation with Neyveli Lignite Corporation (NLC) , Singareni Collieries Company Limited (SCCL) and Geological Survey of India (GSI) has identified five lignite blocks and two coal blocks for development of UCG. However, these guidelines could not be operationalized due to change in policy for allotment of blocks and no blocks for UCG was allotted.

Subsequently a committee under the Chairmanship of Addl. Secretary, Coal has been constituted in Ministry of Coal in Oct, 2011 for making out policy/guidelines for allotment of unexplored blocks in view of amendments to MMDR Act. On the basis of deliberations of the committee a draft policy note is under finalization.

Recently, Ministry of Coal has issued Notice inviting application (NIA) for offer of one lignite block in Gujarat to the Government company of Gujarat for development of UCG.

Further, Coal India Ltd (CIL) is also contemplating to develop UCG projects within its command area. Two such blocks namely Kaitha in Ramgarh coalfield(CCL) and Thesgora”C” in Pench-Kanhan coalfield (WCL) have been identified for taking up UCG.