Indian Coal Ministry Wants Coal India to Get CBM Blocks on Nomination Basis

Indian coal ministry has sent a proposal to Ministry of Oil and Petroleum asking it to give CBM blocks on a nomination basis to Coal India, but this move is unlikely to happen, says Business Standard.

“These blocks are already in the control area of Coal India; it makes sense to drill them,” said S K Shrivastava, coal secretary, on the sidelines of a press conference, reports Business Standard.

However, oil ministry wants international bids for all blocks, including the ones on land under Coal India’s control.

Coal India holds 19 identified CBM blocks.

“These CBM blocks can be under the control area of Coal India, but the resource belongs to the nation. We plan to seek competitive bids. If we give away some blocks on nomination basis, the whole purpose of competitive bidding is gone,” Business Standard adds quoting a senior official from the oil ministry.

Private players too are not in favour of the proposal to allot these blocks to Coal India on nomination basis.

The senior oil ministry official, however, agreed there should be a consensus on drilling the blocks.

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