State-owned CIL has given a go-ahead to a domestic firm for a ₹1,880-crore coal bed methane (CBM) extraction project. The coal behemoth has in the second week of June invited bids from both domestic and overseas companies for two more coal bed methane projects.
The letter of acceptance was issued to a coal bed methane developer by Coal India Limited (CIL) this month.
“Stepping into a new era of coal bed methane (CBM) extraction within its own leasehold area, CIL in a first has issued letter of acceptance to a CBM developer this month. “This is for extraction of CBM, the unconventional form of natural gas found in coal seams,” CIL said in a statement.
The bid for Jharia CBM Block-I of Bharat Coking Coal Ltd (BCCL), the Jharkhand-based subsidiary of CIL, was won by the CBM developer through a global bidding process.