Coal Minister Sriprakash Jaiswal today said that the Union Government plans to auction coal and lignite blocks “very soon”.
Addressing a seminar organised by the city-based MCC Chamber of Commerce & Industry on Wednesday, Jaiswal said that the lignite blocks will be auctioned not only for power generation but also other industrial use including underground gasification.
Lignite is a soft brown fuel which has lower energy content than coal. It is also loosely referred to as the lowest rank coal and, is available mostly in Tamil Nadu, Rajasthan and Gujarat.
Underground gasification is undertaken to produce Syngas through in-situ gasification process by injecting oxidants in the coal or lignite seams. The process is generally adopted in assets which are technically (and economically) difficult to be mined.
Later talking to newspersons on the proposed five per cent divestment of Coal India shares, Jaiswal said: “We are hopeful that the unions will agree with the divestment offer.”