Coal India (CIL) will start producing coal bed methane (CBM) from its lease hold area under Bharat Coking Coal ( BCCL) in Jharkhand. This is the first time the coal miner is producing gas from coal seams, as part of its diversification plans to produce clean energy from coal. CBM extraction will prevent releasing gas into atmosphere while mining coal.
The company has already issued a Letter of Acceptance to a CBM developer, selected through a global bidding process, this month. CIL will be the third company after Great Eastern Energy Corporation ( GEECL) and Essar Oil and Gas Exploration and Production ( EOGEPL) to extract CBM from the coal belts of eastern India.
