It is being anticipated that the Cabinet Committee on Economic Affairs (CCEA) may take a decision on the formation of a new policy on underground coal gasification in near future. Underground coal is converted into ignitable gas that can be used in various manners such as power generation. The entire process is carried under the crust, thus known as Underground Coal Gasification.
According to a source, “CCEA may soon take a call on formation of a policy for converting the coal at the depth of below 300 metres to gas.†Earlier this month, the Coal Ministry had proposed a Cabinet note on the same which attracted annotation from different ministries. Next to policy concluding, block recognition will also take place and expression of interest will be invited, as per the anonymous sources.
Firms owing a net worth of at least 200 crores would be eligible and may apply for the block allocation, the source added further. Earlier countries like South Africa have been approached by Coal Minister Sriprakash Jaiswal for assistance in the mentioned project.
There exists a gap in the demand and supply of coal which rose to 161.5 million tons (MT) in the last FY. It is projected to move up further and may touch 200 MT by 2016-17.
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