The Ministry of Coal on Monday released draft guidelines for preparing mining and mine closure plans for underground coal and lignite gasification (UCG) projects. The draft introduces mandatory pilot feasibility studies, real-time groundwater monitoring, and an escrow fund mechanism to ensure scientific mine closure.

The guidelines, which create a regulatory framework for in-situ gasification of coal and lignite, have been opened for stakeholder feedback within 30 days.

The draft outlines detailed procedures for feasibility assessment, safety management, environmental protection, and post-mining rehabilitation. Before commencing operations, project proponents must undertake a pilot feasibility study through a reputed scientific or research institution.

Mining plans are required to include 3D hydrogeological models, one year of baseline groundwater data, and long-term simulations to track contaminant movement. Continuous groundwater monitoring through telemetry-enabled systems and online sensors is compulsory, with real-time access for the Central and State Pollution Control Boards and the Central Ground Water Authority.

Projects must also conduct site-specific risk studies to predict and mitigate issues such as subsidence, underground fires, and groundwater contamination. An emergency response plan must be in place to manage hazards like loss of hydraulic containment or unexpected land movement.

To ensure proper mine closure, companies are required to maintain an escrow account with the Coal Controller Organisation (CCO). A base deposit of Rs 50,000 per hectare (as of September 2025) must be made, subject to revision every five years and linked to the Wholesale Price Index.

Annual deposits are mandatory throughout the mine’s operational life, with penalties for delayed payments and possible revocation of mining rights for persistent defaults. Up to 75 per cent of the escrow fund may be reimbursed during progressive closure, with the remainder released after final closure and three years of post-closure monitoring.

Closure plans must define the zone of impact, address livelihood concerns, and include community engagement and skill development measures.

The CCO will evaluate mining plans through a technical committee comprising officials from the Ministry of Coal, Directorate General of Mines Safety (DGMS), Central Mine Planning and Design Institute Ltd (CMPDIL), and the Ministry of Petroleum and Natural Gas. The committee is tasked with reviewing proposals within 15 days and issuing final approvals within five working days.

The draft clarifies that these guidelines will operate in conjunction with the Mines and Minerals (Development and Regulation) Act, 1957, and other applicable environmental and labour laws.