India to Demarcate Coal Seams in 15 CBM Blocks

India’s petroleum ministry will soon begin demarcating coal bearing seams in 15 allocated coal bed methane (CBM) blocks and hand them over to the coal ministry to put them on offer through the impending competitive bidding process, Indian Express reported.

The idea behind the move to re-allocate blocks having substantial coal reserves to thermal power producers through competitive bidding under the amended provisions of the Mines and Minerals (Development and Regulation) Act, the newspaper said.

In April, the coal ministry identified 54 coal blocks to be auctioned to state-run and private companies, but it has emerged that of these 54 blocks, 15 are CBM mines which have substantial reserves of both gas and coal.

Now, to include these 15 blocks in the auction process, the coal ministry asked the oil ministry to demarcate the coal bearing areas of these CBM mines, relinquish them and hand them over for auction.

The oil ministry has to ensure that the blocks either explored or unexplored have been relinquished before surrendering them.