Coal India Enabled to Explore for CBM

India's Cabinet Committee on Economic Affairs (CCEA) chaired by prime minister Narendra Modi has changed the rules to make it easier for state-owned Coal India to explore and exploit coalbed methane (CBM) from its coal mines, a government statement said April 11.

Coal India and its subsidiaries can now extract CBM from its mines without seeking approvals under the Petroleum & Natural Gas Rules 1959. According to the government statement, the CCEA has approved amending clause 3 (xiii) of the notification dated November 3 2015 issued by the petroleum ministry under Section 12 of the Oil Fields (Regulation and Development) Act, 1948 (ORD Act, 1948).

“The decision is in line with the government’s initiatives of ‘Ease of Doing Business’.  It 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 said.

Inconsistent government policies have frustrated India’s CBM production, despite its large reserves. The present Modi government has taken a number of decision to revive the sector. Last March, it allowed CBM producers to market and price the gas freely in the domestic market.