The government of India is all set up an inter-ministerial panel for the development of underground coal gasification in coal and lignite bearing areas. The eight-member panel under the chairmanship of Additional Secretary Coal will have members from ministries such as Petroleum and Natural Gas. The panel would also have members from Niti Aayog and Central Mine Planning & Design Institute (CMPDI). The Union Cabinet has approved a policy for developing Underground Coal Gasification (UCG) in coal and lignite bearing areas in the country.

A policy on the lines of the existing policy for Coal Bed Methane (CBM) development on a revenue sharing basis will be adopted to offer the blocks through competitive bidding. UCG is a method of extraction of energy from coal/lignite resources which are otherwise regarded as uneconomical to work through conventional mining methods.

Facts about Coal

• Coal is made largely of carbon but also features other elements such as hydrogen,oxygen, sulfur and nitrogen.
• Different types of coal contain different amounts of carbon. Lignite contains only around 60 to 75%, while anthracite contains more than 92%.
• Coal is the world’s largest source of energy for the production of electricity.
• Coal has long been burned to create electricity and heat. The use of coal is increasing every year.