Deep Energy: Reliance and Axis Lead India into the UCG Era

India has taken a major step forward in coal mining by signing its first-ever coal mine development agreements incorporating underground coal gasification (UCG) provisions on April 28, 2026.

In a move that signals a shift in how the country utilises its vast coal reserves, the Ministry of Coal executed Coal Mine Development and Production Agreements (CMDPAs) with Reliance Industries and Axis Energy Ventures India for four commercial coal blocks under the 14th round of auctions.

Reliance Industries secured the Recherla and Chintalpudi Sector A1 mines in Andhra Pradesh, while Axis Energy Ventures India won the Dip Extension of Belpahar and Tangardihi East mines in Odisha. These agreements mark a significant milestone in opening up commercial coal mining to advanced technologies such as UCG, which enables the extraction of energy from coal seams that are otherwise difficult to mine.

The development is expected to support India’s efforts to increase domestic coal production, reduce import dependence, and meet rising energy demand. At the same time, the adoption of innovative methods like UCG reflects a growing focus on improving efficiency and advancing more sustainable approaches within the country’s energy sector.

News by Rahul Yelligetti.