India May Allow Private Coal Producers to Explore CBM

India’s petroleum ministry is likely to allow private captive coal producers CBM exploration rights in their existing blocks, according to a report in Business Standard.

This clause is expected to be added in an upcoming Cabinet note giving mandate to state-run Coal India Ltd (CIL) to explore coal-bed methane (CBM).

A ministry official close to the development said: “The motive of the Cabinet note was to make the CIL stake sale more attractive, as the company was suffering from environmental issues as well as production constraints. Now, it wants to make it gainful for private captive coal producers, too.”

The move would help captive users such as power, cement and iron & steel companies, which are holding mining rights for captive coal blocks, Business Standard said.

The current move would be a joint effort by the petroleum and coal ministries. The CBM policy adopted by the government in 1997 would be left untouched.

The latest proposal would allow CIL to explore CBM in 450,000 hectares leased or licensed under the coal mines Act, the newspaper reported.