New Delhi: The government has issued draft guidelines to regulate underground coal and lignite gasification projects, proposing a framework that links sustainable resource extraction with mandatory environmental safeguards, risk control, real-time monitoring, and escrow-based mine closure funding.
The Guidelines for Preparation of Mining Plan and Mine Closure Plan for Underground Coal and Lignite Gasification Blocks 2025 have been released by the Ministry of Coal on Monday for stakeholder consultation. Comments have been invited within 30 days of publication.
The draft aims to “optimise coal and lignite extraction using sustainable in-situ gasification technology with minimal waste and surface impact,” while ensuring operations “mitigate risks like subsidence, fire, and water contamination through continuous monitoring and control.”
It mandates integrating progressive mine closure with operations, ensuring that “final closure tasks such as site rehabilitation, well sealing, cavity stabilisation, and ongoing post-closure monitoring” are carried out for long-term safety.
“All coal or lignite gasification mines shall have a mining plan approved by the competent authority to produce syngas,” the draft states. The plan will remain valid for the mine’s life, subject to approved revisions.
Each mining plan must be based on a pilot study assessing technical feasibility, environmental impact, and safety measures, conducted by institutions with proven coal gasification expertise. Results from completed pilot studies in the same or adjacent blocks may also be considered.
The draft prescribes stringent geological and environmental standards. Target seams should ideally be located below 300 metres and at safe distances from groundwater tables and sensitive aquifers, with low-permeability layers acting as confining barriers.
Projects must also be located outside active seismic zones and ecologically sensitive areas. The ministry has directed that “paramount consideration be given to determine an in-situ gasification process that achieves optimum production of syngas while ensuring safe and sustainable resource management.”
Developers must implement real-time pressure and temperature monitoring in syngas pipeline networks and prepare a detailed Impact Assessment Report with a specific chapter on hydrogeology.
During operations, “hydraulic containment” and “regular groundwater level monitoring” through telemetry-enabled digital recorders are required. The data must be transmitted in real time to the Central Pollution Control Board, State Pollution Control Board, and Central Ground Water Authority.
For mine closure, the draft emphasises scientific rehabilitation, post-mining sustainability, and public safety. Project developers will need to deposit funds in an escrow account before starting gasification operations — at a base rate of Rs 50,000 per hectare as of September 2025, adjusted periodically with the Wholesale Price Index.
Up to 75 percent of the amount may be released upon verified progressive closure, while non-compliance could lead to withdrawal of mining permission.
The Coal Controller Organisation will scrutinise and approve mining plans with the help of a Technical Committee comprising representatives from the Ministry of Coal, DGMS, the Ministry of Petroleum and Natural Gas, and CMPDIL.
Implementation of the approved plan will be the mine owner’s responsibility. Annual progress reports on closure and environmental protection must be submitted to the Coal Controller. The Secretary (Coal) will serve as the appellate authority for disputes related to approvals or rejections.
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