Central Mine Planning & Design Institute to implement CBM projects
An MoU was signed by the consultancy arm with subsidiaries
The Central Mine Planning & Design Institute (CMPDI), the exploration and consultancy arm of Coal India, will be the implementing agency for its proposed Rs 3,000 crore coal bed methane (CBM) projects.
A memorandum of agreement (MoU) was signed by the consultancy arm with subsidiaries, Bharat Coking Coal and Eastern Coal Fields, for developing such projects in their respective leasehold areas.
CMPDI will be the principal implementing agency for the subsidiaries and facilitate methane extraction to supplement domestic demand for gas and enhance safety of mines and coal production.
The first project is likely to be undertaken by Bharat Coking Coal, at Jharia coalfields in Jharkhand. This block holds CBM reserves of 25 billion cu mtr and is expected to start production two years after the project is initiated.
The second project will be undertaken at Ranigunj in West Bengal by Eastern Coalfields. This block holds around three billion cu mtr of CBM trapped in coal seams that can be viably extracted and sold in the market.
Two years ago, the Cabinet Committee of Economic Affairs (CCEA) waived off the coal major’s requirement of procuring separate licenses from the ministry of petroleum and natural gas for extracting coal bed methane from its leasehold areas.
Coal India’s CBM projects were on hold following a notification by the government in 2015 which made it mandatory for Coal India to procure operating license from the Ministry of Petroleum for undertaking CBM projects on its leasehold area.