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Coal India begins process of developing Rs 2,474 cr CBM projects

Monday, 18 May 2020
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Coal India (CIL) has initiated the process of development of coal bed methane (CBM) projects with an estimated investment of Rs 2,474 crore, and has invited domestic as well as global firms for exploration of the blocks in West Bengal and Jharkhand. The PSU will develop both projects on revenue sharing basis.

CIL arm Bharat Coking Coal (BCCL) announced the offer of Jharia CBM Block-I for exploration, development and marketing of CBM through Coalbed Methane Developer (CBMD), the contractor. Eastern Coalfields (ECL) has offered Raniganj CBM Block for exploration.

Companies are invited to bid for exploration, development, production, marketing of the blocks. While the investment for Jharia (Jharkhand) CBM project is estimated at Rs 1,879 crore, Raniganj (West Bengal) project is estimated at Rs 595 crore. Both the projects have estimated CBM reserves of 27.42 billion cu mtr.

CIL arm Central Mine Planning and Design Institute (CMPDI) has been appointed as a principal implementing agency (PIA) for BCCL and ECL to facilitate the development and extraction of coal bed methane (CBM). The development of both the projects will be under three phases.

Phase-I will be that of exploration. Under Phase-II, pilot assessment and market survey will happen. Phase-III pertains to development and production.

As part of the bidding documents, PIA on behalf of the Lessee has provided a revenue sharing contract (RSC) agreement which sets forth the detailed terms and conditions of the project, including the development of the CBM project, operation and maintenance of the CBM project, extraction, delivery and marketing of CBM extracted and rights and obligations of CBMD.

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