As part of its plans to unlock the full value of the abundant major minerals in the State, the government is looking to promote companies that can convert the underground coal deposits in the Chintalapudi-Racherla area of the Eluru district into gaseous form, thereby facilitating its use in multiple sectors. 

Efforts are being made to rope in some companies having patented technology to do compression and then gasification in the coal seams on a small scale initially, according to official sources. 

“If the process is successful, the output will be a significant value addition to our State in the mining sector”, a senior officer in the government told The Hindu, while noting that the project was in a nascent stage at the moment. 

An extension of the Godavari Valley Coalfield, these coal deposits are of low – grade but there is a hugerequirement from the industrial sector. 

The Central Government has expedited the process of auctioning and developing these blocks as per the Mines and Minerals (Development & Regulation) Act, 2025, to realise their revenue – generating potential for both the Centre and the State. 

As per official data, Andhra Pradesh (A.P.) has approximately 1,025 Million Tons (MT) and 2,369 MT of measured and indicated coal resources, respectively, a vast chunk of them in the Godavari valley. 

The State Government has set its sights on coal gasification, keeping in view the diverse applications of its end products, which can be used in steel manufacturing, city gas grids, power generation and in multiple other sectors.

Coal gas is considered especially useful to undertake combined cycle power generation in A.P. as it can substitute high – ash content coal (which is a nagging problem for thermal plants in the State) to a large extent. 

The increasing Central Government support to the States in tapping the potential benefits of coal gasification with a goal to turn 100 milliontonnes of coal into gas by 2030 is expected to be of great help to A.P.


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