A new phase in India’s underground coal gasification programme is drawing attention across eastern India as the Kasta pilot near the West Bengal–Jharkhand border moves towards commercial evaluation. For Kolkata, the development matters less as a city project than as part of a wider shift in the region’s industrial energy network, where coal remains deeply embedded in power, manufacturing and employment.
A Union Ministry of Coal advisor recently reviewed the Kasta Underground Coal Gasification (UCG) research project, which is being implemented by Eastern Coalfields Limited with the Central Mine Planning and Design Institute and Canadian technical support. The pilot follows exploratory drilling that began in June 2024 and is designed to test whether coal can be converted into synthesis gas, or syngas, without conventional extraction to the surface.The technology could have implications for Kolkata’s wider industrial hinterland. Syngas can be processed for uses including power generation, chemical production and industrial feedstock. That gives the programme a potential role in diversifying energy supply, although its commercial and environmental performance will depend on how efficiently emissions, groundwater risks and underground combustion are controlled.That distinction is important for the region’s Kolkata energy transition. Gasification does not make coal a zero-carbon fuel.
While UCG can reduce some surface mining requirements and access coal that may be difficult to extract conventionally, the process still involves carbon-intensive feedstock. Urban and industrial planners will therefore need to assess the full emissions chain rather than treating gasification automatically as a clean-energy solution.The national policy backdrop is significant. The Centre has set a target of gasifying 100 million tonnes of coal and lignite by 2030, while financial support has been established for surface coal-gasification projects. The Kasta pilot is being funded as a Coal India research initiative, making its technical results particularly relevant to future investment decisions.For Kolkata and neighbouring industrial districts, the bigger question is whether new energy technologies can strengthen economic resilience without transferring environmental costs to mining communities. Experts in urban and industrial planning point to the need for stronger monitoring of groundwater, land stability, air emissions and local employment alongside project economics.
The next stage at Kasta will therefore be watched beyond the coal sector. For the Kolkata energy transition, the project’s real value will ultimately depend not simply on whether underground gasification works, but whether it can deliver reliable industrial energy while meeting increasingly demanding environmental and public-interest standards.
