Government Asks Coal India to Start Producing CBM: Press
The Indian government has asked state-run Coal India to produce at least 2mn m3/day of coalbed methane (CBM) in the next two to three years, Press Trust of India reported November 25 citing sources.
The coal ministry has directed the consultancy arm of Coal India to be actively involved in the development of CBM in the company’s leasehold areas, an official told the news agency. Last year, India's cabinet changed the rules to make it easier for Coal India to explore and exploit CBM from its coal mines. Coal India and its subsidiaries can now extract CBM from its mines without seeking approvals under the Petroleum & Natural Gas Rules 1959.
According to the official, the coal ministry had last month asked the officials of Central Mine Planning and Design Institute (CMPDI) – the consultancy arm of Coal India to get involved more actively for CBM development. CMPDI informed the ministry that a model contract document and request for proposal to select CBM developer have been prepared and submitted to coal companies, the official told Press Trust of India.
“It was informed that the document will be approved by the respective subsidiary boards and then the CBM operators will be engaged,” the official added. CMPDI was of the view that joint venture with coal production companies, being lessee, might expedite CBM development, the official said.
Inconsistent government policies have frustrated India’s CBM production, despite its large reserves. The present Modi government has taken a number of decisions to revive the sector. In 2017, it allowed CBM producers to market and price the gas freely in the domestic market.