The consortium formed by GAIL India Ltd, Australia's Arrow Energy and the Sweden-based Energy Infrastructure Group announced on Monday that production of coal bed methane gas from three blocks bagged by them would start by 2011-12.
Tata Power Company is also a partner in two of these blocks. Two blocks are in Chhattisgarh state, the third in Jharkhand.
"GAIL will invest around $ 250 million," said BS Negi, GAIL director (business development). The total expected capital expenditure on the project will be about $ 500 to 600 million.