Energy demand of India is continuously increasing. Coal is the major fossil fuel in India and continues to play a pivotal role in the energy sector. India has relatively large reserves of coal (253 billion tonnes) compared to crude oil (728 million tonnes) and natural gas (686 billion cubic meters). Coal meets about 60% of the commercial energy needs and about 70% of the electricity produced in India comes from coal, and therefore there is a need for technologies for utilization of coals efficiently and cleanly. UCG offers many advantages over the conventional mining and gasification process. UCG is a well proven technology. Due to the site-specific nature of the process, possibility of land subsidence and surrounding aquifer water contamination, this technology is still in a developing stage in India. Potential for UCG in India is studied by comparing the properties of Indian coals with the properties of coal that are utilized by various UCG trials. The essential issues are elaborated for starting UCG in India based on the reported information from the successful field trials conducted all over the world. Indian industries are in the process of initiating pilot studies of UCG at various sites. This study will help to motivate both applied and theoretical research work on UCG sites in India and after detailed analysis it will provide basic data to interested industries. (C) 2007 Elsevier Ltd. All rights reserved.