Energy Security with Safety: Govt Releases Strict Guidelines for Underground Coal Gasification
SDG 9: Industry, Innovation and Infrastructure | SDG 7: Affordable and Clean Energy | SDG 13: Climate Action
Institutions: Ministry of Coal
The Ministry of Coal has released Draft Guidelines for Preparation of Mining Plan and Mine Closure Plan for Underground Coal Gasification (UCG) Blocks, establishing a comprehensive and rigorous framework for the safe and sustainable use of this emerging technology. UCG is an in-situ (in place) process that converts otherwise unmineable, deep coal into synthetic gas (syngas), boosting India’s long-term energy self-reliance.
To ensure that this new extraction method adheres to strict safety and environmental standards, the guidelines mandate several critical steps for project developers:
Pilot Study Requirement: A full Mining Plan must be approved only after conducting a mandatory pilot feasibility study by an accredited institution, assessing technical and environmental impact.
Environmental Protection: Projects are subject to stringent geological conditions, including being prohibited in active seismic or ecologically sensitive zones. Developers must implement real-time groundwater monitoring and maintain hydraulic containment to prevent water contamination, with data streamed directly to pollution control boards.
Financial Accountability: To ensure sites are fully restored, developers must deposit mine closure funds in an escrow account with the Coal Controller Organisation before operations begin (at a base rate of ₹50,000 per hectare, adjusted for inflation). Non-compliance can lead to the revocation of mining permission and forfeiture of funds.
These guidelines are vital for integrating economic security with environmental responsibility. By creating mandatory escrow funds and strong environmental protocols, the Ministry is establishing a transparent, accountable framework to manage the risks associated with this complex technology, which is crucial for unlocking India’s vast, deep coal reserves while fulfilling climate and sustainability goals.
What is Underground Coal Gasification (UCG)?→ UCG is an industrial process that acts as a “clean coal” technology. Instead of physically mining coal, wells are drilled into deep, unmineable coal seams, and oxygen/steam is injected to ignite the coal. This converts the solid coal into a synthetic gas (syngas) which is then extracted to the surface for use in power generation, hydrogen production, or chemical manufacturing.
Follow the draft guidelines here: Government of India Ministry of Coal