Union Cabinet gives nod for development of Underground Coal Gasification

The Union Cabinet has approved a policy framework for development of Underground Coal Gasification (UCG) in unexplored coal and lignite bearing areas in the country.
Decision in this regard was taken by Union Cabinet Committee meeting chaired by the Prime Minister Narendra Modi in New Delhi.

What is Underground Coal Gasification (UCG)?

  • UCG is a clean coal extraction technology for extracting energy from the coal seams and lignite resources which cannot be mined through traditional mining technology.
  • It is mainly an industrial process which converts coal into product gases such as methane, hydrogen, CO and CO2 that are combusted for electricity generation.
  • The gasification process is carried out in non-mined coal seams using injection of oxidants which brings the product gas to surface through production wells drilled from the surface.

UCG Policy Framework

  • The UCG policy framework has been framed in line with the existing policy for Coal Bed Methane (CBM) development on revenue sharing basis.
  • Development of UCG has been envisaged to provide for energy security and will be adopted for offering the blocks through competitive bidding.
  • Inter-Ministerial Committee under the Union Ministry of Coal with members from concerned Ministries will be responsible for identification of the areas.
  • Central Mine Planning and Design Institute Limited (CMPDIL) will be the nodal agency for all business related proposals and regulations.



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