By Enersider Desk | New Delhi
The Ministry of Coal has executed Coal Mine/Block Production and Development Agreements (CMDPAs) with successful bidders for four coal mines, marking the first tranche of commercial coal mines in India to carry embedded provisions for Underground Coal Gasification (UCG), according to a PIB release dated April 28, 2026.
Image Credits: PIB
The agreements were executed under the 14th round of commercial coal mining auctions. Reliance Industries Limited secured the Recherla and Chintalpudi Sector A1 mines. Axis Energy Ventures India Private Limited bagged the Dip Extension of Belpahar and Tangardihi East coal mines. These mines span across Andhra Pradesh and Odisha, with two being partially explored and two fully explored mines.
UCG converts coal into synthetic gas in situ, directly within the seam, without conventional mining. This technology unlocks energy from deep, thin, or otherwise unworkable coal seams that traditional extraction methods cannot economically access.
The syngas produced through UCG can serve as a domestic feedstock for the manufacture of urea and ammonia. In the chemicals and petrochemicals sector, UCG syngas can replace imported natural gas and naphtha as a base feedstock, enabling domestic production of methanol, dimethyl ether (DME), and synthetic fuels.
With these four CMDPAs, the total number of agreements signed under commercial coal auctions reaches 138 mines, covering a peak rated capacity of 331.544 MTPA. These 138 mines are projected to generate annual revenues of approximately Rs. 42,980 crores, attract capital investments of Rs. 48,231 crores, and create direct and indirect employment for approximately 4,34,175 persons.
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