CIL signs pact worth Rs 1,880 crore for commercial extraction of coal bed methane

Coal India Ltd on Monday said its subsidiary Bharat Coking Coal Ltd (BCCL) on Monday signed a revenue sharing contract worth nearly Rs 1,880 crore for commercial extraction of coal bed methane (CBM) with Prabha Energy Pvt Ltd.

The CBM would be extracted from Jharia Block I under leasehold area of BCCL, an official statement said.

While BCCL would be putting up close to Rs 370 crore towards the cost of the land, the rest will be met by the CBM developer, selected through a global bidding process. CIL has assigned CMPDI, its Ranchi-based consultancy arm, as the principal implementing agency to oversee the project, the statement said.

“This is an important development and with this CIL would be stepping into a new era of CBM extraction on its own in its leasehold area”, said a senior official of CIL.

Spread over an area of approximately 27 Sq Kms, Jharia CBM Block-I has a resource of around 25 Billion Cubic Metres (BCM). Average production capacity is pegged at 1.3 million metric standard cubic metres per day once the commercial operation kick starts.

The project is scheduled in three phases. The first phase of exploration is of two year duration from the signing of the contract followed by the pilot phase of three years. Thereafter the production phase is for thirty years.

CIL is hopeful that the first two phases would be completed earlier than scheduled and production commences sooner than planned.

ET Energy World
Show More

Related Articles

Back to top button