NEW DELHI | Jan 17, 2016: As part of its policy for the development of coal gasification, the government has set up an inter-ministerial panel for identifying coal and lignite mines to be put up for auction or allotment.

The development of underground coal gasification (UCG )is envisaged to provide energy security.

The panel being chaired by Additional Secretary, Coal has members from ministries such as Petroleum and Natural Gas, an official said.

"Recently, the Inter Ministerial Committee was set up. The panel would discuss, identify and make recommendation on coal blocks have to be either auctioned or alloted (for underground coal gasification)," the official said.

The panel also has members from Niti Aayog and Central Mine Planning & Design Institute (CMPDI), the official added.

The Union Cabinet last month approved a policy for developing Underground Coal Gasification 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.

Ministry of Coal may also engage a consultant for development of the contract document.

For development of bid documents, work programme, conducting the bidding process, evaluation of bids, monitoring and process protocols etc., Central Mine Planning and Design Institute Limited (CMPDIL) will be the nodal agency.

In the perspective of next two years some explored blocks will be identified for offer. Additional blocks will be identified for offer in the long-term.

(Source: http://economictimes.indiatimes.com/)