Coal India Arm Offers Two Blocks for UCG

Central Mine Planning and Design Institute (CMPDI), a Coal India subsidiary, would be offering two blocks for underground coal gasification (UCG, Daily News & Analysis (DNA) newspaper has reported.

“The two blocks are in Central Coalfields and Western Coalfields. Tender for the blocks would be floated this month and parties quoting the maximum revenue share would be allotted the blocks,” A K Debnath, chairman and managing director, CMPDI, said.

According to DNA, there were at least 13-14 parties that attended the pre-bid meeting, many of which are foreign companies.

CMPDI is also ready with the data package for shale gas, which it would hand over to the Directorate General of Hydrocarbons (DGH) for explorations.

“We have got the bore hole data and have also identified the strata where the gas exists. We have found shale gas reserves in many places across the country, the maximum at Cauvery basin. ONGC is likely to take up a project on a pilot scale,” Debnath said without disclosing the exact reserves of shale gas, DNS reported.

CMPDI has also set the data dossier for coal bed methane (CBM) and handed it over to the DGH. The DGH will soon go for the fifth round of CBM bidding.

It has so far offered 33 blocks covering 17,000 km in four rounds of bidding. But only four have come to the production stage at 2.5 lakh cubic metres of gas per day.