Cabinet Approved Exploration And Exploitation Of Coal Bed Methane

Cabinet approved Exploration and Exploitation of Coal Bed Methane

Context

The Cabinet gave its approval for amendment in Section 12 of the Oil Fields (Regulation and Development) Act, 1948 (ORD Act, 1948).
Due to this amendment, relaxation is granted to Coal India Limited (CIL) and its subsidiaries for not applying for grant of license/lease under the PNG Rules, 1959 for extraction of Coal Bed Methane (CBM) under their Coal Bearing Areas.

Impact

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.

Source:PIB