State-owned CIL arm CMPDI has been been appointed as a principal implementing agency for BCCL and ECL to facilitate the development and extraction of coal bed methane (CBM).
The move will enhance safety of mines and coal production and place Coal India (CIL) on the exclusive CBM map of the world.
CBM is a form of natural gas trapped in coal seams underground, which can be extracted by drilling into the seam.
Central Mine Planning and Design Institute (CMPDI) has been appointed as principal implementing agency (PIA) for development and extraction of CBM in CIL arms Bharat Coking Coal Ltd (BCCL) and Eastern Coalfields Ltd (ECL), a company official said.
"A Memorandum of Agreement (MoA) has been signed between CMPDI and BCCL, CMPDI and ECL for the development and extraction of CBM in their leasehold areas," the official said.
With this pact, "CMPDI will be the principal implementing agency for BCCL and ECL and facilitate extraction of Coal Bed Methane gas".
This will supplement the domestic demand of gas as a source of clean energy and enhance safety of mines and coal production.
CBM Extraction from Coal mines is one step further towards diversification of CMPDI activities.
The Cabinet, had earlier relaxed rules for Coal India for extraction of natural gas lying below coal seams in its blocks in a bid to quickly boost production.
The government had said that it is planning to give a big push to coal bed methane as it spent most of 2019 laying ground for diversification of the coal sector.
Stating that in 2019 the ground has been set up for CBM, UCG, a top official had said the coal ministry has been able to firm up a business model and in the coming years some tangible steps would be seen on the ground in CBM, UCG and surface coal gasification of technology induction.
Coal India accounts for over 80 per cent of domestic coal output.
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