India is preparing to auction coal blocks designated for coal gasification as part of its broader plan to gasify 100 million tonnes (mt) of coal within the next five years.
The initiative was highlighted by Coal Additional Secretary Rupinder Brar during a coal gasification roadshow organised by the Coal Ministry in partnership with the Federation of Indian Chambers of Commerce and Industry (FICCI), according to the Press Trust of India (PTI).
Coal gasification is a process that converts coal into synthetic gas (syngas), primarily made up of carbon monoxide and hydrogen.
By reacting coal with oxygen and steam at high temperatures, syngas can be produced for use in manufacturing fertilisers, methanol and synthetic natural gas.
Compared to traditional burning, the process allows coal to be used in a cleaner and more diverse set of applications.
A ministry official told PTI that “the coal blocks will be auctioned under the commercial coal mining auction”.
Alongside this, the government plans to release a request for proposal to allocate the remaining Rs25 billion under its financial incentive scheme for coal gasification.
To date, Rs60 billion has already been disbursed under the Rs85 billion scheme, which was approved last year to promote coal and lignite gasification projects across both public sector units and private companies.
The aim is to boost the production of synthetic natural gas and other chemicals, while reducing India’s reliance on imports.
In a related development, state-owned energy company NTPC is moving to secure access to overseas uranium resources to support its nuclear ambitions.
The company recently signed an agreement with the Uranium Corporation of India Ltd (UCIL).
A company official told PTI: “We are in the process of signing the JV agreement with Uranium Corporation of India for joint techno-commercial due diligence of overseas uranium assets.
“It has gone for approval to the board. Then we will award a contract for consultancy.”
The consultant will advise NTPC and UCIL on potential global uranium mining opportunities, after which decisions on acquisitions are expected.
NTPC had previously signed a draft memorandum of understanding with UCIL for similar due diligence work.
Currently, NTPC is India’s largest power generator, with an installed capacity of 83,863MW across coal, gas/liquid fuel, hydro and solar facilities.
The move into uranium asset assessments is seen as a strategic step to diversify its raw material base and build secure supply channels for future nuclear power projects.
