India plans to auction coal blocks suitable for coal gasification in the near future as part of its initiative to gasify 100 million tonnes (mt) of coal over the next five years.

This was announced by Coal Additional Secretary Rupinder Brar during a roadshow on coal gasification organised by the Coal Ministry and non-governmental trade association the Federation of Indian Chambers of Commerce and Industry (FICCI), reported the Press Trust of India (PTI).

Coal gasification is a technique that transforms coal into a synthetic gas, or syngas, which consists primarily of carbon monoxide and hydrogen. This is achieved by reacting coal with oxygen and steam at elevated temperatures.

The resulting syngas can be used to manufacture a range of downstream products such as fertilisers, methanol and synthetic natural gas. This process provides a cleaner and more versatile application of coal compared to conventional combustion methods.

The coal blocks will be auctioned under the commercial coal mining auction, a ministry official told the PTI.

The government also plans to issue a request for proposal to allocate the remaining Rs25bn under the financial incentive scheme for the coal gasification project. So far, approximately Rs60bn has been allocated under this scheme.

Last year, the government approved an Rs85bn financial incentive scheme to promote coal and lignite gasification projects by both government public sector units and private companies. The scheme aims to convert coal into valuable products such as synthetic natural gas and chemicals, reducing reliance on imported products.

Meanwhile, state-owned National Thermal Power Corporation (NTPC) plans to appoint a consultant to identify uranium mines overseas after signing a formal agreement with the Uranium Corporation of India (UCIL). This move is part of NTPC’s plan to secure raw materials for its future nuclear projects, according to another report by PTI.

A company official stated; “We are in the process of signing the JV [joint venture] agreement with Uranium Corporation of India for joint techno-commercial due diligence of overseas uranium assets. It has gone for approval to the board. Then we will award a contract for consultancy.”

The consultant will advise on potential locations for uranium mines, with decisions on acquiring these assets to follow.

The NTPC board previously signed a draft memorandum of understanding with UCIL for joint techno-commercial due diligence of overseas uranium assets. Currently, NTPC, the country’s largest power generator, has an installed capacity of 83,863MW, utilising fuel sources such as coal, gas/liquid fuel, hydro and solar.

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