Reliance and Axis Energy win India’s first coal mines with underground gasification provision
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Reliance Industries and Axis Energy Ventures India have secured rights to four coal mines under India’s first commercial coal auction tranche featuring underground coal gasification provisions, the Centre said on Tuesday.
Reliance Industries won the Recherla and Chintalpudi Sector A1 mines, while Axis Energy Ventures secured the Dip Extension of Belpahar and Tangardihi East mines.
The mines are located across Andhra Pradesh and Odisha. Two of the blocks are fully explored, and two are partially explored.
Underground coal gasification, or UCG, converts coal into synthetic gas directly within underground coal seams, eliminating the need for conventional mining. The technology is considered useful for accessing deep or economically unviable coal deposits.
The government said including UCG provisions in commercial mining agreements for the first time would help future-proof the sector and support cleaner and more efficient energy production.
The synthetic gas produced through the process can be used in manufacturing fertilisers such as urea and ammonia, potentially reducing India’s dependence on imports. It can also serve as feedstock for chemicals, petrochemicals, methanol, dimethyl ether, and synthetic fuels.
With the signing of these four agreements, the total number of commercial coal mine agreements in India has reached 138, covering a peak rated production capacity of 331.544 million tonnes per annum.
The government said these mines are expected to generate annual revenues of around Rs 42,980 crore, attract investments worth Rs 48,231 crore, and create direct and indirect employment for about 4.34 lakh people.