Coal India Does Not Have Automatic CBM Exploration Rights in India

India’s Oil minister Veerappa Moily has said that Coal India does not have automatic coal bed methane exploration rights in the country.

According to a news report in financial daily Economic Times, the minister rejected a draft note for the Cabinet proposing exploration of coal bed methane rights to state-run company without auction and directed bureaucrats to re-draft it to encourage competition and efficiency. 

"Coal India is not an expert in CBM exploration as ONGC is not an expert in coal mining. The government can't allow ONGC to mine coal just because coal is found in its oil and gas blocks," Economic Times quoted a senior oil ministry official.

Coal India operates over 470 coal mines in eight states.

Moily has also put in a new team of officials to re-draft the note, which is expected to be ready by November, the newspaper reported citing offcial sources. 

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