The Cabinet Committee on Economic Affairs (CCEA) in its meeting held yesterday approved the proposal of Ministry of Petroleum & Natural Gas regarding policy for Exploration and Exploitation of Coal Bed Methane (CBM) areas under Coal Mining Lease allotted to Coal India Limited (CIL).

The policy will allow Coal India Limited to carry out exploration and exploitation of CBM from their coal mining lease areas leading to additional availability of CBM. This would also lead to degasifying the coal seams ahead of coal mining thus mitigating safety hazard and gainfully utilizing CBM.

It will have an added advantage for the environment since the gas which is presently either being flared or released in the atmosphere adding to greenhouse effect, will now be gainfully channeled into the supply volumes. Production of additional CBM would also add to the revenue of Central / State Government as well as the mine operator in addition to possibility of earning carbon credits through proper exploitation of CBM.

Coal Bed Methane exploration allowed in mining leases, enabling degasification, commercial supply, and environmental benefits. Approval authorizes Coal India Limited to conduct Coal Bed Methane (CBM) exploration and exploitation within its coal mining lease areas, enabling degasification of seams ahead of mining and capture of CBM for commercial supply instead of flaring. The policy aims to mitigate safety hazards, reduce greenhouse gas emissions, generate additional revenue for governments and the mine operator, and permit potential carbon credit earnings through proper CBM utilization.