The Hindu Business Line : Coal-bed methane: ONGC-CIL pact cleared

THE Union Ministry of Petroleum and Natural Gas has approved an MoU signed between Oil and Natural Gas Corporation (ONGC) and Coal India Ltd (CIL) for collaborative exploration and exploitation of Coal-Bed Methane (CBM) through a joint venture (JV) company, to be incorporated between the two public sector undertakings.

The initial job of the proposed JV company will be to undertake exploration of CBM reserve in the virgin coal blocks allotted to the ONGC-CIL consortium. The commercial exploitation of the reserve is expected to begin before the end of the ongoing Tenth Plan.

Indicating this, a board-level source of CIL said the coal company's financial involvement in the proposed JV company will be limited to equity participation which may be a maximum of 26 per cent of the total paid-up capital.

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Coal-bed methane: ONGC-CIL pact cleared