The Coal Ministry has identified seven blocks for development of underground coal gasification (UCG) to promote clean technologies in coal mining. These include five lignite blocks and two coal blocks. The government has already notified coal gasification and coal liquefaction as end uses under the captive mining policy. Two coal blocks in Orissa have already been allotted to two private companies for development of coal-to-liquid (CTL) plants.
Coal India is setting up 20 washeries with an annual capacity 111 million tonne in the 11th and 12th Plan. The government has already awarded 33 blocks for exploration and exploitation of coal-bed methane.