The Hindu Business Line : ONGC voices concern over dual allotment of coal blocks

Oil and Natural Gas Corporation Ltd (ONGC) has expressed concern over the allotment of three coal blocks awarded to it for extracting coal bed methane (CBM) to three other companies for mining coal.

The three blocks - one in West Bengal and two in Jharkhand - have recently been allotted to NTPC, Electrosteel and Casting Ltd, and West Bengal Mineral Development and Trading Corporation for coal mining.

A senior ONGC official told Business Line, "The matter has been taken up by the two Ministries. Awarding the same blocks to others for mining would hinder our development work." The Coal Ministry has awarded the block in Raniganj (West Bengal) to West Bengal Mineral Development and Trading, the block in North Karanpura (Jharkhand) to NTPC, and the Jharia (Jharkhand) block to a private sector company.

Ideally, the licensee of the block should be informed if the same block is to be awarded to another entity for mining purpose. However, in this case no information was given to ONGC, the official said. To sort out the crisis, a committee has been constituted comprising representatives from the Ministries of Petroleum and Coal. A timeframe of three months was given to the committee to suggest a roadmap for development of these blocks. The committee has asked all parties to share data, based on which it would figure ways to move ahead.

ONGC has initiated discussions with NTPC to come out with a work programme that would not adversely affect development work of both the parties.

According to mining experts, while extraction of coal and production of CBM are not necessarily exclusive functions, simultaneous production leads to lower recovery of both the materials.

For extracting CBM, it is necessary to leave an area having a radius of 45 to 90 metres around the borehole through which the gas comes out. This, on the other hand, brings down the amount of coal extractable from the mine, they said. CBM is extracted at depths below 300 metres, while coal is mined in India up to 200 metres. However, globally technology for underground mining up to 300 metres is available.

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