2 more CBM blocks identified in state | india | Hindustan Times
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2 more CBM blocks identified in state

GOVERNMENT OF India has recently identified two more Coal Bed Methane (CBM) blocks in mineral rich Madhya Pradesh, which would be formally launched next week in New Delhi. This would be followed by road shows in India and abroad to woo big players for investing in these blocks.

india Updated: Feb 17, 2006 13:15 IST

GOVERNMENT OF India has recently identified two more Coal Bed Methane (CBM) blocks in mineral rich Madhya Pradesh, which would be formally launched next week in New Delhi. This would be followed by road shows in India and abroad to woo big players for investing in these blocks.

These new CBM blocks are in Singrauli in Sidhi district and Sohagpur in Shahdol district. With these, number of CBM blocks in Madhya Pradesh has risen to five. While exploration work is being undertaken at two blocks awarded to Reliance Industries Limited, the Public Sector giant Oil and Natural Gas Corporation (ONGC), which has recently been awarded a block in Chhindwara district, is all set to start its operations.

CBM would not only open a new non-conventional source of energy but would also provide a new source of revenue to the fund-starved government, said a senior officer of Mining department.

Talking to Hindustan Times, he said that after finding deposits of CBM the State Government would get 10 percent of royalty on the value of the gas.

Meanwhile, to increase the pace of exploration and development of CBM the Government of India, under CBM-III round of international bidding, has identified 10 additional blocks in different coalfields of the country for offer. These blocks are located in the states of Madhya Pradesh, Chhattisgarh, Jharkhand, West Bengal, Andhra Pradesh and Rajasthan and hold sizable resources of CBM. As the Union Government has claimed in its website, these blocks of CBM III, ‘are definitely one of the best in the world’.

It is to be mentioned here that the state government had already signed a ‘license agreement’ with the Reliance Industries Limited for undertaking exploration of Coal Bed Methane (CBM) in Sohagpur east and west blocks of Shahdol district of Madhya Pradesh. After getting formal nod of the state government, the company is carrying out exploration work in Sohagpur east and west blocks in Shahdol district in an area of 919 sq kilometers (419 sq km for east and 500 sq km for west block).

CBM is a sweet natural gas (does not contain hydrogen sulphide gas) found in coal. Natural gas from CBM can be used for home heating, natural gas-fired electrical generation and industrial fuel. CBM provides an alternative energy source to coal, petroleum and hydropower.

Senior officials of the department further revealed that preliminary explorations being carried out by the RIL are showing positive results. “It is too early to say anything about these projects because everything depends on successful exploration,” he said. He however said that initial findings revealed that the Madhya Pradesh topped the list of CBM deposits in the country.