Coal India Showcases CBM Projects: Press

Three private companies - Adani, Essar and Reliance Industries - have participated in a pre-bid meeting related to the development of state-run Coal India’s (CIL) coalbed methane (CBM) projects, according to a May 14 report by the Economic Times.  It plans to invite bids for two projects, one at Jharia in the state of Jharkhand and Raniganj in the state of West Bengal this week.

Earlier this week, the Central Mine Planning & Design Institute (CMPDI), the exploration and consultancy arm CIL, was appointed as the principal implementing agency for the development of CBM in CIL’s leasehold areas.

CMPDI also signed a memorandum of understanding with CIL’s subsidiaries, Bharat Coking Coals (BCCL) and Eastern Coal Fields (ECL), for the development of CBM in their leasehold areas. The Jharia project is in BCCL’s coalfields while the Raniganj project falls in ECL’s coalfields.

The Economic Times reported that CIL is also considering new CBM projects at subsidiaries South Eastern Coalfields and Central Coalfields.

The company has decided to develop projects on a revenue-share basis. Bidding will be on the basis of revenue they intend to share, with no floor for bidding. Subsidiaries will be responsible for procuring statutory and other clearances, the newspaper reported.