India to Explore for Shale Gas in the State of Jharkhand

Indian government has asked Central Mine Planning and Design Institute (CMPDI) to search for possibility of extracting shale gas in India. The state owned entity will begin its search from the state of Jharkhand.

Outgoing chairman-cum-managing director of the CMPDI A K Singh said first exploration will take place in the Damodar river valley in Jharkhand, Times of India reported.

“We expect that huge reserve of shale gas is there in the Damodar valley region because of its crust formation and green cover," said Singh.  He added that the company would be soon ready with the bid document and invite interested parties for participation.

Singh even hinted that foreign oil and gas companies would also be allowed to take part in the bidding process which is expected to start over the next few months, the newspaper report said.

According to a source in the CMPDI, production of unconventional energy sources like shale, coal bed methane and gas hydrates will reduce its import load, as gas demand is expected to make quantum jump by the end of the current plan period.

"The government will exempt explorers from payment of customs duties on imports of exploration equipment," theTimes of India said citing the source.