New Delhi, Apr 29 (KNN) The Ministry of Coal has signed Coal Mine/Block Production and Development Agreements (CMDPAs) for four coal mines under the 14th round of commercial coal auctions, marking the first time such agreements include provisions for Underground Coal Gasification (UCG).

The agreements were signed with Reliance Industries Ltd for the Recherla and Chintalpudi Sector A1 mines, and Axis Energy Ventures India Pvt Ltd for the Dip Extension of Belpahar and Tangardihi East coal mines. The mines are located in Andhra Pradesh and Odisha, and include both fully explored and partially explored blocks.

The inclusion of Underground Coal Gasification provisions allows conversion of coal into synthetic gas directly within underground seams, enabling utilisation of coal resources that are otherwise difficult or uneconomical to extract through conventional mining methods.

The synthetic gas produced through this process can be used as a feedstock in sectors such as fertilisers and petrochemicals, potentially reducing dependence on imports of natural gas and related inputs, while expanding the scope of domestic resource utilisation.

With the signing of these agreements, the total number of CMDPAs awarded under commercial coal mining auctions has reached 138 mines, with a combined peak rated capacity of 331.544 million tonnes per annum (MTPA). 

These projects are expected to generate annual revenues of around Rs 42,980 crore, attract investments of approximately Rs 48,231 crore, and create employment for over 4.34 lakh people.

The move reflects ongoing efforts to enhance domestic coal production, strengthen energy security, and integrate advanced technologies into the sector.