BackCIL unit signs ₹1,880 cr CBM contract
While BCCL would be putting up close to ₹370 crore towards the cost of the land, the rest will be met by the coal bed methane developer
PremiumNEW DELHI : State-run Coal India Ltd’s (CIL) subsidiary Bharat Coking Coal Ltd (BCCL) on Monday signed a ₹1,880 crore revenue-sharing contract with Prabha Energy Pvt. Ltd for commercial extraction of coal bed methane (CBM).
Prabha Energy was selected through a global bidding process for the CBM to be extracted from Jharia Block I in Jharkhand, according to a CIL statement.
“While BCCL would be putting up close to ₹370 crore towards the cost of the land, the rest will be met by the CBM developer. CIL has assigned CMPDI, its Ranchi-based consultancy arm, as the principal implementing agency to oversee the project," the statement added.
India’s overall coal requirement is expected to go up to 1,123 million tonne (mt) by 2023 from the present 700 mt. CIL is the world’s largest coal miner, with a coal production target of 670 mt for the current financial year.
“Spread over an area of approximately 27 square kilometres, Jharia CBM Block-I has 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 statement said.
This comes at a time when the UN’s Intergovernmental Panel on Climate Change has said extreme weather events will impact lives, livelihoods, and businesses in India and South Asia.
India has the world’s fourth largest coal reserves and is the second-largest producer of the fossil fuel.
“CBM extraction is part of CIL’s diversification portfolio under clean coal initiatives. Harnessing CBM has dual advantages. Methane has energy potential, and the captured gas can be put into use for many commercial uses. The commissioning of gas pipeline in eastern India under URJA Ganga project is in the works by GAIL. CBM produced may be used for city gas distribution or through pipeline for potential users," the statement said.
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