Coal Bed Methane Extraction By Coal India

Coal India and its subsidiaries will now be able to extract Coal Bed Methane from its mines without seeking approvals under the Petroleum & Natural Gas Rules 1959 (PNG Rules, 1959).

The government expects that this will expedite the exploration and exploitation of CBM, enhance the availability of natural gas and reduce the gap in demand and supply of natural gas.

The government had earlier issued a notification on 03.11.2015 granted rights to CIL and its subsidiaries for exploration and exploitation of CBM from all coal-bearing areas for which they possess mining lease for coal.

In another decision, the Cabinet approved the delegation of powers to the Minister of Petroleum and Natural Gas and Minister of Finance to approve the award of the Blocks/Contract Areas to successful bidders under HELP/OALP after International Competitive Bidding (ICB).

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