An MoA has been signed between CMPDI and BCCL and CMPDI and ECL for the development and extraction of CBM
CMPDI will be the Principal Implementing Agency for BCCL and ECL and facilitate extraction of Coal Bed Methane gas
Kolkata: Coal India subsidiaries BCCL (Bharat Coking Coal Limited) and ECL (Eastern Coalfields Limited) have signed an agreement with CMPDI (Central Mine Planning and Design Institute), another subsidiary company of Coal India, for the extraction and development of Coal Bed Methane. “A Memorandum of Agreement (MoA) has been signed between CMPDI and BCCL and CMPDI and ECL for the development and extraction of CBM in their leasehold areas,” an official statement from Coal India said.
Coal Bed Methane to be extracted from ECL’s Raniganj & BCCL’s Jharia fields
With this agreement, CMPDI will be the Principal Implementing Agency for BCCL and ECL and facilitate the extraction of Coal Bed Methane gas. “This will supplement the domestic demand of gas as a source of clean energy and enhance the safety of mines and coal production. This will also place CIL on the exclusive CBM map of the world,” said Coal India. The agreement is valid for a period of 30 years and will involve the extraction of Coal Bed Methane from ECL’s Raniganj fields and BCCL’s Jharia fields, a spokesperson for Coal India told PSU Watch.
— Eastern Coalfields Limited (@easterncoal) May 9, 2020
What is Coal Bed Methane?
Coal Bed Methane is an unconventional form of natural gas extracted from coal deposits or coal seams. It is formed during the process of coalification, the transformation of plant material into coal. It is considered a valuable energy resource with reserves and production having grown nearly every year since 1989. It is considered as an alternative source for augmenting India’s energy resource. India has the fifth-largest proven coal reserves in the world and thus holds significant prospects for exploration and exploitation of CBM.
CBM Extraction from Coal mines is one of the steps taken towards the diversification of CMPDI’s operations.