Archive · 22 Aug 2026
Axis Energy Wins Odisha Coal Blocks for Underground Gasification
Axis Energy has received permission to develop two coal blocks in Odisha.
The company plans to explore underground coal gasification, a method that changes coal deep underground into a useful gas without digging all of it out.
The blocks are called Tangardihi East and Dip Extension of Belpahar.
They are located in Odisha’s Sundargarh and Jharsuguda districts.
Together, they are estimated to hold about 7,000 million tonnes of coal.
The projects may require more than Rs.
30,000 crore at the beginning.
The coal blocks may also be used for traditional mining, surface gasification, coal liquefaction, or export.
The allocation is part of India’s effort to expand coal gasification by 2030.
Supporters say the projects could help India rely less on imported crude oil.
Axis Energy secured allocation orders for the Tangardihi East and Dip Extension of Belpahar coal blocks in Odisha.
The blocks were awarded under the Ministry of Coal’s 14th Tranche of Commercial Coal Mine e-auction.
Axis Energy signed the Coal Block Development and Production Agreement on 28 April 2026.
The two blocks together are estimated to contain about 7,000 million tonnes of coal across Sundargarh and Jharsuguda districts.
The projects are expected to require an initial investment exceeding Rs. 30,000 crore to establish underground coal gasification viability.
- Who
- Axis Energy was awarded two coal blocks by the Ministry of Coal; Reliance Industries Limited was also allotted two mines in the same auction tranche.
- What
- Axis Energy received Allocation Orders for underground coal gasification projects involving the Tangardihi East Coal Mine and the Dip Extension of Belpahar Coal Mine.
- When
- The Coal Block Development and Production Agreement was executed on 28 April 2026.
- Where
- The blocks are in Odisha’s Sundargarh and Jharsuguda districts, within the IB Valley region.
- Why
- The projects aim to explore gasification of otherwise difficult-to-mine coal and support India’s goal of 100 million tonnes of coal gasification by 2030.
- Successful bidder
- Axis Energy
- Coal blocks
- Tangardihi East Coal Mine and Dip Extension of Belpahar Coal Mine
- Auction
- 14th Tranche of Commercial Coal Mine e-auction conducted by the Ministry of Coal
- Estimated coal resources
- About 4,500 million tonnes in Tangardihi East and 2,500 million tonnes in Dip Extension of Belpahar
- Block areas
- Approximately 6,500 acres and 4,300 acres, respectively
- Initial investment
- More than Rs. 30,000 crore
- National target
- 100 million tonnes of coal gasification by 2030