Draft Guidelines for Underground Coal and Lignite Gasification (UCG) Blocks

The Ministry of Coal issued draft guidelines for the preparation of mining and mine closure plans for UCG blocks, requiring a pilot feasibility study, real-time groundwater monitoring, and an escrow fund for mine closure.

Regulatory Framework

• Establishes procedures for project feasibility, safety, environmental management, and post-mining rehabilitation.
• Open for stakeholder comments within 30 days of issue.

Key Requirements

• Pilot Feasibility Study:
  • Must be conducted before starting operations by a reputed scientific or research institution.
• Mining Plans:
  • Include 3D hydrogeological models, baseline groundwater data (one year), and long-term simulations on contaminant movement.
• Groundwater Monitoring:
  • Continuous monitoring using telemetry-enabled systems and online sensors.
  • Real-time data access for Central and State Pollution Control Boards and Central Ground Water Authority.
• Site-Specific Studies:
  • Predict and mitigate subsidence, underground fire, and groundwater contamination.
• Emergency Response Plan:
  • Detail measures against hazards such as loss of hydraulic containment or unexpected land movement.

Mine Closure and Escrow Fund

• Escrow Account:
  • Maintain with the Coal Controller Organisation (CCO).
  • Deposit ₹50,000 per hectare as a base rate, subject to revisions every five years and escalation with the Wholesale Price Index.
  • Annual deposits required through the mine’s life, with penalties for delay and possible withdrawal of mining permission for default.
  • Up to 75% of the fund reimbursed during progressive closure, balance after final closure and three years of post-monitoring.
• Closure Plans:
  • Identify a zone of impact, address livelihood issues, and include community engagement and skill development measures.

Approval Process

• Technical Committee Review:
  • Comprises officials from the Ministry of Coal, Directorate General of Mines Safety (DGMS), Central Mine Planning and Design Institute Ltd (CMPDIL), and the Ministry of Petroleum and Natural Gas.
  • Review plans within 15 days and issue final approvals within five working days.

Legal Compliance

• Guidelines:
  • Operate alongside the Mines and Minerals (Development and Regulation) Act, 1957, and related environmental and labour regulations.