After coal bed methane, coal gassification is set to become an important source of energy in the country.
RIL seeks nod for a block in Assam
NEW DELHI: After coal bed methane, coal gassification is set to become an important source of energy in the country. The ministry of coal will soon open up this sector for private participation. It will issue a notification permitting underground coal gassification as the eligible end-use for allocation of coal blocks.
The move follows interest shown by private companies in undertaking coal gassification projects. Sources said Reliance Industries Ltd (RIL) has recently applied to the ministry for allocation of a block in Assam.
Coal mining by private players is not permitted, except for some designated purposes. Senior coal ministry officials told DNA Money that just as coal blocks are allocated to power, cement and steel producers for captive use, blocks would be issued for gassification purposes.
The Central Mine Planning and Design Institute (CMPDI) is currently undertaking an exercise to identify blocks that can be taken up for coal gassification.
“The notification has been finalised and would be put up to the prime minister for approval since he is in charge of the coal ministry after the exit of Shibu Soren from the ministry,” said the official, adding that the government was keen to get private investment.
ONGC, through a tie-up with Coal India Ltd, Neyveli Lignite Corp and Singareni Coalfields, is the only company to have undertaken underground coal gassification projects in the country.
“The first production of gas from coal is expected next year,” said an ONGC official. CMPDI would also come out with a regulatory framework for underground coal gassification.
Currently, Russia is a pioneer in coal gassification activities and produces gas from coal at Siberia and Uzbekistan that was once part of the erstwhile Soviet Union.
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