Govt initiate ₹8500 crore incentive scheme to boost coal gasification

The Central Government has taken policy initiatives to support coal gasification projects in commercial coal block auction. There is a provision for 50 percent rebate in revenue share for the coal used towards gasification purposes.

The Government has taken Policy initiatives to support coal gasification projects in commercial coal block auction. There is a provision for 50 percent rebate in revenue share for the coal used towards gasification purposes. Creation of sub-sector under Non-Regulated Sector (NRS) linkage auction to enable supply of coal to Coal Gasification projects. This information was shared by Union Minister of Coal and Mines G. Kishan Reddy in a written reply in Rajya Sabha.

Government has notified Underground Coal Gasification (UCG) Policy in September, 2016 to enable the development of UCG so as to maximise the utilisation of difficult to mine coal and lignite resources and promote clean coal technologies. It had formulated Coal Bed Methane (CBM) Policy in 1997 for development of CBM. As per the policy, Ministry of Petroleum & Natural Gas (MoPNG) became the administrative Ministry and Directorate General of Hydrocarbons (DGH) was made the nodal agency for development of CBM in the country. MoPNG in consultation with Ministry of Coal (MoC) has identified and offered CBM blocks from coal bearing areas. In partial modification of CBM Policy, 1997, vide notification dated 8^th May’ 2018, the government granted exploration and exploitation rights of CBM to Coal India Limited (CIL) and its subsidiaries in coal bearing areas for which they possess coal mining rights.

Centre is also promoting beneficiation of coking coal in the country by setting up of coal washeries. Where as there is no specific concept to estimate clean coal reserve. However, as on 01.04.2024, the total estimated coal resource in the county is 3,89,421.34 million tonnes. As per DGH, the estimated CBM resources of India as on 31.03.2024 is 2,600 Billion Cubic Meter (BCM).

At present total 15 CBM Blocks are active. Out of these 15 Blocks, 6 CBM Blocks are in production stage, 2 CBM Blocks are in development stage and 7 CBM Blocks are in exploration stage covering an area of about 7009 sq.km MoPNG/DGH has still 5100 Sq.km of coal bearing area for which CBM prospectivity examination is to be carried out.In CIL subsidiaries leasehold, one CBM Block under Bharat Coking Coal Limited (BCCL) leasehold area, i.e. Jharia CBM Block-I has been awarded to CBM developer.. In addition to above, two more CBM blocks have been delineated for CBM extraction within existing leasehold area of CIL subsidiaries.