Business Line: Bengal’s land ceiling norm dogs coal bed methane operators

Mamata Banerjee’s stand on land acquisition may have made industrialisation difficult in West Bengal. But, in April this year, her Government had relaxed the provisions of an archaic law that made life easier for coal bed methane exploration companies such as Essar Oil and Great Eastern Energy Corporation Ltd (GEECL) operating in the State.

The West Bengal Land and Land Reforms Act 1955 (WBLLRA) prevents possession of more than 24 acres. There were exceptions to this rule under Section 14 Y. There were also ways to bend the rule.

But, none of them allegedly benefited the coal bed methane exploration companies as oil and gas sector was not eligible for such exemptions. They need hardly one or two acres to drill a well. However, at the same time they need to drill too many wells in the respective acreages, to let the methane gas flow, as is the industry norm.

The two existing operators together, for example, have already drilled over 200 wells which means they acquired anything between 200-400 acres just for allowing gas to come out. Some more land is required for laying pipelines or installing compression facilities. MORE