India’s Ministry of Coal aims to soon call for bids to mine coal blocks, including for underground gasification, Additional Secretary Rupinder Brar (pictured) today told Infralogic on the sidelines of a roadshow in Mumbai.

While the ministry has been auctioning coal blocks to private players since 2020, it is now specifically identifying blocks suitable for underground gasification, she said.

These are typically blocks where coal reserves are deep-seated at a depth preferably more than around 300 metres, she said.

Brar declined to provide a timeline for the launch of the procurement process.

“Roadshows are typically rolled out when one is ready!” she said.

The next roadshow is in Hyderabad, she said, adding that the ministry will decide on also hosting international events to elicit more interest.

SBI Capital Markets is advising the ministry.

At the Mumbai event today hosted by the ministry – in partnership with the Federation of Indian Chambers of Commerce & Industry (FICCI) – multinational industrial gases majors Linde and Air Products expressed interest in participating in the government’s programme for developing coal gasification technologies and infrastructure.

Fiscal incentives for investors in coal gasification will be announced soon, said Brar.

India announced a coal gasification mission in 2020, aiming to gasify 100 million tonnes of coal by 2030.

The effort is part of a clean coal transition strategy, seeking to produce clean fuels like synthetic natural gas and chemicals, reduce reliance on imported fuels, boost energy security, and drive economic growth.

Last year, the government approved an INR 85bn (USD 962m) scheme to promote coal and lignite gasification projects, to be offered as viability funding to both public and private sector investors.