New Delhi: The government will soon set up an inter-ministerial panel for development of underground coal gasification in coal and lignite bearing areas.
"The inter-ministerial committee will soon get the approval of the competent authority," an official said.
The eight-member panel under the chairmanship of Additional Secretary Coal will have members from ministries such as Petroleum and Natural Gas, the official said.
"The panel would also have members from Niti Aayog and Central Mine Planning & Design Institute (CMPDI)," the official added.
The Union Cabinet last month approved a policy for developing Underground Coal Gasification (UCG) in coal and lignite bearing areas in the country.
A policy on the lines of the existing policy for Coal Bed Methane (CBM) development on a revenue sharing basis will be adopted to offer the blocks through competitive bidding.
UCG is a method of extraction of energy from coal/lignite resources, which are otherwise regarded as uneconomical to work through conventional mining methods.