First coal mine agreements with underground coal gasification provisions
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On 28 April 2026 the Coal Ministry signed Coal Mine Development and Production Agreements for four mines from the 14th commercial auction round. They are the first commercial coal mines in India with built-in provisions for Underground Coal Gasification (UCG), which turns coal into syngas inside the seam. The mines are in Andhra Pradesh and Odisha.
- Agreements
- CMDPAs for four mines, 14th round of commercial coal auctions
- First
- First commercial mines with UCG provisions
- Mines
- Recherla, Chintalpudi Sector A1 (Reliance Industries); Dip Extension of Belpahar, Tangardihi East (Axis Energy Ventures)
- States
- Andhra Pradesh and Odisha
- Auction totals
- 138 mines; peak rated capacity 331.544 MTPA
- Projected
- Revenue ~₹42,980 crore a year; investment ₹48,231 crore; ~4,34,175 jobs
Underground coal gasification in coal mine agreements: what happened?
Much Indian coal lies too deep or in seams too thin to mine cheaply. UCG burns coal under controlled conditions inside the seam and brings up gas instead of coal. Adding UCG to mine contracts lets operators try this later.
- Two mines are partially explored and two fully explored.
- UCG syngas can feed urea and ammonia plants and cut fertiliser imports.
- It can also replace imported natural gas and naphtha for methanol, DME and synthetic fuels.
What is Underground Coal Gasification?
- A method that converts coal into synthetic gas (syngas) in situ, within the seam, without conventional mining.
Why does underground coal gasification in coal mine agreements matter?
- Energy security: Uses coal that cannot be mined economically.
- Economy: Domestic feedstock for fertilisers and chemicals.
What can Prelims ask on underground coal gasification in coal mine agreements?
- UCG: coal to syngas in situ, without conventional mining.
- First UCG-provision mines: 14th round, AP and Odisha.
- Commercial coal auctions: 138 mines, 331.544 MTPA.
How to use this in Mains
- As per PIB (2026-04-28): the Coal Ministry signed its first coal mine development and production agreements with underground coal gasification provisions.
- Gasification lets India use deep coal that is hard to mine, with less pollution than burning it.
Quotable data pointThe Coal Ministry signed its first coal mine development and production agreements with underground coal gasification provisions.
PIB: Coal: UCG agreements, 28 Apr 2026
Exam angle
Prelims: UCG vs surface gasification.
Practice MCQs
Original practice questions (not PYQs).
Underground Coal Gasification (UCG) refers to
Answer (b) & explanation
PIB (Coal), 28 April 2026.
Questions students ask about this
What is special about the April 2026 coal mine agreements?
They are the first commercial coal mine agreements in India with provisions for Underground Coal Gasification.
What is UCG used for?
The syngas can make urea, ammonia, methanol, DME and synthetic fuels, replacing imported gas and naphtha.
How many mines have agreements under commercial coal auctions so far?
138 mines with a peak rated capacity of 331.544 MTPA.
Keep studying
Go deeper
Official source: PIB: Coal: UCG agreements, 28 Apr 2026
facts from cited sources only; faculty review pending