 "Cabinet to take up KG-D6 bank guarantee issue, CBM rights for CIL today")
The Union Cabinet is likely to take up the issue of having bank guarantee from RIL to make up for the shortfall in gas supply from its D1 and D3 discoveries in KG-D6 block and also a proposal allowing Coal India to produce natural gas from coal seams (CBM) in its existing coal mines.
If the Cabinet Committee on Economic Affairs (CCEA) clears the proposal, it would give CIL the right to explore CBM from its existing coal blocks.
On the other hand, Reliance Industries Ltd (RIL) might have to shell out $9 billion in bank guarantee if the government approves a proposal aimed at breaking the deadlock on natural gas price hike.