Coal news and updates

State¬owned CIL's consultancy arm CMPDI has invited applications from global firms for providing consultancy on formulating bid documents with regard to development of underground coal gasification projects.

The development of underground coal gasification (UCG) is envisaged to provide energy security. Tenders are invited "from the reputed and experienced consultancy firms/organisations for... formulation of bid document and model Contract Document for Development of Underground Coal Gasification (UCG)," the Central Mine Planning and Development Institute (CMPDI) said on its website.

"The bidder must have successfully completed at least two works of formulation of Model Contract Document and Bid Document for development and allocation for projects of UCG/Coalbed Methane/Coal Mine Methane/exploration and production (E&P) sector of Oil & Natural Gas/Shale Gas blocks during last ten years period," the bid document said.

The Union Cabinet earlier approved a policy for developing Underground Coal Gasification 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. The government had earlier said it would engage a consultant for development of the contract document. 

For development of bid documents, work programme, conducting the bidding process, evaluation of bids, monitoring and process protocols etc, Central Mine Planning and Design Institute Ltd will be the nodal agency. In the perspective of next two years some explored blocks will be identified for offer. Additional blocks will be identified for offer in the longterm. As part of its policy for the development of coal gasification, the government has set up an inter¬ministerial panel for identifying coal and lignite mines to be put up for auction or allotment.

Source: Economic Times