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Reliance Industries has proposed about Rs 2.73 lakh crore of investment over 30 years for India's first integrated Underground Coal Gasification complex.
The project is planned in Eluru district, Andhra Pradesh, using the Chintalapudi and Recherla coal blocks.
The two blocks hold an estimated 3,130.61 million tonnes of coal at depths beyond 600 metres, too deep for conventional mining.
The plan runs in three stages: a pilot of up to Rs 3,000 crore, development of Rs 1,20,000 crore, and production of Rs 1,50,000 crore from 2030.
Reliance estimates 3,000 to 5,000 direct jobs and 20,000 to 35,000 indirect and induced livelihoods.
UCG converts coal into synthesis gas in place, inside the seam, instead of digging the coal out. Wells are drilled into the seam, oxidants such as oxygen or air and steam are injected under control, the coal is partially combusted, and the resulting gas mixture is brought to the surface through a production well. Because no coal is physically extracted, seams that are too deep for economically viable mining become usable, and there is no overburden removal or spoil heap of the kind surface mining leaves behind.
Simple Analogy: Instead of hauling firewood out of the forest, you burn it where it stands under controlled conditions and pipe out only the gas.
Pilot and exploration phase, budget of up to Rs 3,000 crore
Development phase, estimated outlay Rs 1,20,000 crore
Production phase, budget of Rs 1,50,000 crore
| Method | How it works | Where it is suitable |
|---|---|---|
| Opencast (surface) mining | Overburden is stripped and coal is extracted from the surface | Shallow seams; most of India's coal output |
| Underground mining (board-and-pillar, longwall) | Shafts and galleries are driven into the seam and coal is cut and hauled out | Deeper seams, up to economically workable depths |
| Underground Coal Gasification | Coal is converted to syngas in situ and only gas is brought up | Seams too deep or too poor in quality to mine conventionally |
Achieve 100 million tonnes of coal gasification capacity by 2030
Key: Supported by financial incentive schemes for surface coal and lignite gasification projects, along with policy incentives for underground coal gasification
GS Paper 3 > Infrastructure > Energy; Mineral resources
General Awareness > Economy and energy
General Awareness > Corporate investment news
Synthesis gas, a mixture consisting mainly of carbon monoxide, hydrogen, carbon dioxide and methane.
A process carried out in the original location of the resource, without extracting it first.
The route by which the Ministry of Coal allots coal blocks to private and public bidders for commercial mining.