Cabinet approves coal block auction for underground gasification

NEW DELHI: The Union Cabinet has approved auction of coal and lignite mines for underground coal gasification (UCG).

UCG is a method of extraction of energy from coaland lignite resources which are otherwise regarded as uneconomical to work through conventional mining methods.

“A policy on the lines broadly similar to the existing policy for Coal Bed Methane (CBM) development on revenue sharing basis will be adopted for offering the blocks through competitive bidding,”an official statement said.