Indian government will most likely cancel the coal bed methane block allotted to GEECL in the southern state of Tamil Nadu for not fulfilling contractual requirements, Press Trust of India quoted oil minister Dharmendra Pradhan as saying on Wednesday. 

The AIM listed company was awarded block MG-CBM-2008/IV under the fourth round of CBM block auction in 2010.  The production sharing contract (PSC) for the block was signed on July 29, 2010. 

"The contractor (GEECL) has not submitted the requisite documents viz bank guarantee, financial performance guarantee etc as required under the contract till date despite notice issued by the Ministry of Petroleum and Natural Gas," the minister he said in a written reply to a question in the parliament. 

GEECL has not initiated any exploration activity on the block and the first phase of exploration expired on November 3, 2013, Press Trust reported. 

"Action for cancellation of the contract has been initiated as per the provisions of CBM contract," Pradhan said. 

GEECL has begun production from Raniganj (South) block in eastern state of West Bengal and is currently producing 0.38 million standard cubic metres per day.