Under the strategic direction of the Ministry of Coal, Eastern Coalfields Limited (ECL) has embarked on an innovative pilot project for Underground Coal Gasification (UCG) at the Kasta coal block in Jamtara District, Jharkhand. 

This underscores the Ministry’s proactive diversification efforts within the coal sector. This first ever ground breaking initiative aims to revolutionize the coal industry by using in-situ coal gasification to convert it into valuable gases such as methane, hydrogen, carbon monoxide, and carbon dioxide. 

These gases can be utilized to produce synthetic natural gas, chemical feedstocks for fuels, fertilizers, explosives, and other industrial applications. 

The Ministry of Coal is fully committed to promoting coal gasification projects, recognizing their potential to transform coal into various high-value chemical products. Underground Coal Gasification offers a significant advantage by providing access to coal resources that are economically unviable through traditional mining methods. 

This pilot project represents a significant milestone for Coal India Limited (CIL) and its subsidiaries, positioning India as a leader in adopting advanced coal gasification technologies.

In December, 2015, the Ministry of Coal approved a comprehensive policy framework for UCG in coal and lignite-bearing areas. In alignment with this policy, Coal India selected the Kasta coal block to implement UCG technology tailored to Indian geo-mining conditions. 

Managed by ECL in collaboration with CMPDI Ranchi and Ergo Exergy Technologies Inc. (EETI) from Canada, this project spans two years and comprises of two phases.

The first phase, which commenced on June 22, 2024, involves preparing a Technical Feasibility Report through borehole drilling and core testing.