- Why in news
- On 28 April 2026, the Ministry of Coal signed Coal Mine Development and Production Agreements (CMDPAs) for four mines under the 14th round of commercial coal auctions. These are the first commercial coal mines in India with Underground Coal Gasification (UCG) provisions built in.
- What it is
- Underground Coal Gasification (UCG) converts coal into synthetic gas (syngas) inside the seam, without conventional mining. Air or oxygen and steam are injected through wells, and the gas is brought out through production wells. It suits deep, thin or unworkable seams, and the syngas can be used for fertiliser, chemicals and fuels.
- First of its kind
- These are the first commercial coal mines in India to carry UCG provisions in their agreements.
- Auction round and winners
- The agreements come under the 14th round of commercial auctions. Reliance Industries won Recherla and Chintalpudi Sector A1. Axis Energy Ventures India won Dip Extension of Belpahar and Tangardihi East.
- How UCG works
- UCG turns coal into synthetic gas in situ, within the seam, with no conventional mining.
- Uses of syngas
- Syngas can be feedstock for urea and ammonia. It can also replace imported natural gas and naphtha to make methanol, DME and synthetic fuels.
- Cumulative auction figures
- With these four, 138 mines have agreements under commercial auctions, with a peak rated capacity of 331.544 MTPA.
- Syngas composition
- Syngas is mainly a mix of hydrogen, carbon monoxide and some methane and carbon dioxide.
Don’t confuse with UCG vs coal bed methane (CBM): UCG burns the coal seam in situ to make syngas. CBM extracts methane already trapped in coal seams, without burning the coal.
Don’t confuse with UCG vs surface coal gasification: Surface gasification is done in a plant after the coal is mined. UCG gasifies the coal underground in the seam.
Science and technology: 57 Prelims questions since 2013; most test the concept behind the news, not the news itself. In Mains, 12 news-triggered questions.
Why it matters
- Opens deep, thin or unworkable seams that conventional mining cannot reach economically.
- Syngas can cut imports of fertiliser feedstock, natural gas and naphtha, helping energy and food security.
- Supports value addition and cleaner use of coal, in line with coal gasification goals.
Problems
- Risks of groundwater contamination and subsidence need careful site selection and monitoring.
- The technology is unproven at commercial scale in India and needs high capital and technical skill.
Way forward
- Run pilot projects with strict environmental monitoring before scaling up.
- Set clear regulatory and safety norms, and support technology partnerships and R&D.
Put in your answer
Commercial auction scale: The 138 mines are projected to give about ₹42,980 crore annual revenue and ₹48,231 crore investment, and about 4,34,175 jobs.
Import substitution example: UCG syngas can replace imported natural gas and naphtha as chemical feedstock for methanol, DME and synthetic fuels.
- 2017Mains GS1 · Q6Discuss whether coal mining is inevitable for development despite environmental harm.
- 2013Mains GS3 · Q19Consequences of illegal mining and MoEF's Go and No-Go coal zones concept.
- 2025Mains GS3 · Q17Why mining is an environmental hazard, and remedial measures to reduce it.
UPSC’s own questions that come close to this issue, from our Prelims and Mains banks.
No practice question for this one; the card may still help an answer. Why: First coal mine agreements with UCG provisions; lasting energy topic, but no scheme or body facts that Prelims statements can turn on in this release.
Worth revising until Prelims 2027: most news questions come within two years of the event.