Coal Min hopes to begin commercial utilisation of UCG by 2010-11

Kolkata, Nov 12 (UNI) The Coal Ministry hopes to commercially exploit underground coal gasification (UCG) in India by 2010-11.

This was announced by Coal Secretary H.C.Gupta at a workshop on UCG by Indo-US Energy Dialogue Working Group on Coal and Asian Pacific Partnership Coal Mining Task Force here today.

''Developing UCG in India would require framing legislation and policies structured to encourage the private sector to participate in this area and at the same time taking care of environment and ecology, Mr Gupta said.

Outlining the areas that need focus, the Coal secretary said the government may think extending some fiscal incentives and tax concessions as applicable under the Coal Bed Methane Policy.

''UCG can also be notified as an end use under present captive mining policy to facilitate allocation of coal blocks to potential entrepreneurs and the mechanism of allotment of coal blocks for UCG would need to be developed,'' Mr Gupta said.

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