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Oil and Natural Gas Corporation (ONGC) and Coal India Ltd (CIL) on Thursday signed a Memorandum of Understanding for active association in underground coal gassification (UGC). The pilot project for UGC is expected to entail an expenditure of Rs 75 crore. The project is aimed at garnering the resources of coal fields that cannot be mined or have been abandoned. The investments and benefits of project will be equally shared by the two public sector enterprises. ONGC has selected Russias Skochinsky Institute of Mining (SIM) for technical collaboration. Both of them are working together to evolve a detailed work plan to develop and apply the technology in various parts of the country. ONGC Chairman and Managing Director Subir Raha said" Our deadline for starting commercial production of UGC projects is 2009. Though we identified 15 sites for UCG, prioritisation of the pilot projects will be completed by December 15 this year." CIL Chairman and Managing Director Shashi Kumar said UGC would enable the coal industry to overcome problems of no-mine able reserves, pollution and safety hazards. The MoU signed underlines that both ONGC and CIL will have equal participation in terms of investments and expenditure. ONGC has signed MoUs with Gujarat Mineral Development Corporation,Gujarat Industries Power Company and Neyveli Lignite Corporation. A MoU with Singareni Collieries Company is also planned in the near future. UCG allows converting un-mineable coal/lignite into combustion gases by gassifying the coal in-situ.
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| Posted : 11/5/2005 |
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