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April 12

Union cabinet simplifies CBM exploration from Coal India blocks

NEW DELHI: The Union cabinet on Wednesday approved simplifying exploration of coal bed methane from coal blocks allotted to Coal India Ltd.

The Cabinet Committee on Economic Affairs granted relaxation to Coal India and its subsidiaries from applying for grant of license under the PNG Rules, 1959 for extraction of Coal Bed Methane (CBM) under their coal bearing areas.

CCEA gave its approval for amending an earlier notification issued by the oil ministry.

“The decision is in line with the government’s initiatives of ‘ease of doing business’. It will expedite the exploration and exploitation of CBM, enhance the availability of natural gas and reduce the gap in demand and supply of natural gas. 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,” an official statement said.

The cabinet approved the amendment of clause 3(xiii) of a notification dated November 3, 2015 issued by the ministry of petroleum and natural gas under Section 12 of the Oil Fields (Regulation and Development) Act, 1948 (ORD Act, 1948).

The notification granted rights to CIL and its subsidiaries for exploration and exploitation of CBM from all coal bearing areas for which they possess mining lease for coal. Clause 3(vi) of the notification provides that the "lessee shall submit application under the P&NG Rules 1959 for grant of mining lease for CBM to the oil ministry along with detailed recommendations of Central Mine Planning & Design Institute Limited.  

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