Coal India to Implement CBM Projects
The Central Mine Planning & Design Institute (CMPDI), the exploration and consultancy arm of state-run Coal India (CIL), has been appointed as the principal implementing agency for the development of coalbed methane (CBM) in CIL’s leasehold areas, CMPDI said on May 9 on Twitter.
Also, CMPDI signed a memorandum of understanding with CIL’s subsidiaries, Bharat Coking Coals (BCCL) and Eastern Coal Fields (ECL), for the development of CBM in their leasehold areas. Shekhar Saran, chairman and managing director of CMPDI, said it was taking one step further towards the diversification of its activities, noting that CBM would be a source of green energy for the nation.
According to the Economic Times, the first project is likely to be undertaken by BCCL, at the Jharia coalfields in the eastern state of Jharkhand. This block holds CBM reserves of 25bn m3 and is expected to start production two years after the project is initiated. The second project will be undertaken at Ranigunj in the state of West Bengal by ECL. This block holds around 3bn m3 of CBM reserves, the Economic Times said.
Last year, the Indian coal ministry directed CMPDI to be actively involved in the development of CBM in CIL’s leasehold areas. In 2018, India's cabinet changed the rules to make it easier for CIL to explore and exploit CBM from its coal mines. CIL and its subsidiaries can now extract CBM from their mines without seeking approvals under the Petroleum & Natural Gas Rules 1959.
Inconsistent government policies have frustrated Indian efforts to exploit CBM, despite the country having 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 on the domestic market.