The Coal Ministry has submitted a list of 14 blocks to be considered for coal-bed methane (CBM) extraction to the Ministry for Petroleum and Natural Gas.

However, 11 of these blocks overlap either partially or fully with the existing blocks awarded to companies like ONGC and Great Eastern Energy Company Ltd. All the 14 blocks identified for CBM extraction are in the eastern region of the country. A senior Coal Ministry official said that the modalities and method of award of these blocks will now be decided by the Oil Ministry.

“Over the last five years, there has been constant tug of war between the two Ministries as to who will be in charge of awarding the CBM blocks. Coal Ministry has now withdrawn the hurdles created earlier and we have left it to the Ministry for Petroleum and Natural Gas to award the blocks,” the official said.

Further, the official added the Petroleum Ministry will decide on whether the blocks will be awarded under the existing CBM Policy, approved in 1997 or the Hydrocarbon Exploration Licensing Policy cleared by the Cabinet earlier this month.

One of the key aspects of the Hydrocarbon Exploration Licensing Policy is a single licence for exploring any kind of hydrocarbon. This is expected to cut red tape as now there will be one policy framework for all hydrocarbons. “One thing is clear, that the CBM has to be exploited from these coal blocks. Ideally, there can be joint extraction simultaneously of both coal and CBM. Companies with expertise in CBM extraction can always form joint ventures with coal mining companies, so capabilities of the private sector is no issue,” the Coal Ministry official.

India holds significant prospects for commercial recovery of CBM. The country has an estimated 710.39-948.73 billion cubic metre of CBM gas. Since 2001, 33 CBM blocks have been allotted in four rounds of global bidding.

Related Topics
comment COMMENT NOW