The Hindu Business Line : News areas may be opened up for coal bed methane exploration

Kolkata, Aug 23 The Directorate-General of Hydrocarbons (DGH) may propose opening up new areas like Rajmahal in Bihar, Talcher and Ib-Valley in Orissa and Singrauli in Madhya Pradesh for CBM exploration in the forthcoming bidding round.

The total number of blocks to be offered may remain similar to the previous rounds.

Representation of the traditional coal mining areas in Jharkhand and West Bengal, may be limited.

India has offered a total of eight CBM blocks – including five in Jharkhand and one in West Bengal – for exploration in the first round.

The ratio started declining from the second round due lack of availability of virgin coal-bearing areas.

Out a total of 18 blocks awarded for CBM exploration in the second and third bidding rounds, only three are in Jharkhand and one in Bengal.

“Jharkhand and Bengal offer limited scope for opening up new areas,” a source said.

According to him, DGH is in talks with Coal India Ltd for identifying suitable areas for CBM exploration across the country.

New fronts

“We may open new exploration fronts in Rajmahal, Talcher, IB-valley and Singrauli.”

Industry sources said that the DGH is trying to make the best use of the increasing investor interest in hydrocarbon exploration in India by attracting investment even in non-traditional areas.

“India has previously opened CBM blocks for exploration even in areas where the methane content in the gas is generally lower. The initiative has definitely widened the prospect of CBM development in the country,” a CIL source said.

CBM-III bids

It may be mentioned that against a total of 14 bids received for eight blocks in the second round, the last round (CBM-III) witnessed hectic bidding with a total of 54 bids for 10 blocks offered.

Also, all the blocks offered in the third round received multiple bids.