Cabinet simplifies coal bed methane extraction from CIL blocks

Simplifying procedures for exploration of coal bed methane (CBM) gas from blocks allotted to Coal India Ltd (CIL), a cabinet panel on Wednesday allowed relaxation to the state miner and its subsidiaries from applying for grant of license for extracting CBM in their coal bearing areas.

Earlier, CIL had to apply to the Petroleum Ministry for a licence for the purpose.

The Cabinet Committee on Economic Affairs approved amending an earlier notification issued by the Petroleum Ministry in this regard, an official statement said following a cabinet meeting.

"Due to this amendment relaxation is granted under the Petroleum and Natural Gas Rules 1959 (PNG Rules, 1959) to Coal India Ltd and its subsidiaries for not applying for grant of licence/lease under the PNG Rules 1959 for extraction of CBM under their coal bearing areas," a Petroleum Ministry release said.

The move will expedite the exploration and exploitation of CBM, enhance the availability of natural gas and reduce the demand-supply gap and is in line with the government's initiatives for ease of doing business, it said.

"The increased development activities for exploration and exploitation of CBM gas reserves in and around the block will generate economic activities which in turn has potential to create employment opportunities in CBM operations and in the industries," the statement added

--IANS

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