India's oil ministry is expected to allow both private and public sector firms to produce CBM from their exising mines, acording to Press Trust of India.

 

Currently only state owned coal miner Coal India (CIL) is allowed to produce natural gas from its coal mines.

With a view to capture CBM from all available coal bearing areas, the ministry is now moving the cabinet again to bring all coal mining areas held by not just CIL but other public sector units, joint ventures and private companies as well under this framework, sources privy to the development told Press Trust.

The ministry is proposing that all CBM rich coal seams, irrespective of depths, including areas planned for coal mining, be allowed to produce the fuel.

 

Sources told Press Trust the coal ministry is opposed to allowing miners other than CIL for exploitation of CBM. The ministry is proposing that where mining lease for extraction of coal has been granted, the rights for extraction of CBM should also be available with the operator.