Steel Authority of India Wants to Explore for CBM with ONGC

Indian state owned Steel Authority of India Limited (SAIL) is in talks with ONGC to jointly explore for CBM in the coal mines allocated to the steel major for captive consumption, financial daily Economic Times reported earlier this week.

According to the daily, discussions are at a preliminary stage and the blocks have not yet been identified.

SAIL wants to use CBM to reduce input costs. It is already using methane produced from an ONGC-operated block in Jharkhand, added Economic Times.

The steel maker is examining the possibility of exploiting methane trapped in coal seams of its captive blocks after the government allowed Coal India to produce CBM, government and industry officials told Economic Times.

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