Lok Sabha Question No. 252 (STARRED), answered on 2025-12-17
Subject: Exploration of Coal Bed Methane
Ministry: COAL
Asked by: Shri Y S Avinash Reddy

## GOVERNMENT OF INDIA MINISTRY OF COAL

## LOK SABHA STARRED QUESTION NO. *252

ANSWERED ON 17.12.2025

## EXPLORATION OF COAL BED METHANE

## *252. SHRI Y S AVINASH REDDY:

Will the Minister of COAL be pleased to state:

(a) whether it is true that with the fifth-largest reserves of coal globally India holds significant prospects for exploration and production of Coal Bed Methane (CBM) in over twelve States;

(b) if so, the steps being taken by the Government to harness coal bed methane in the country; and

(c)  the  future  of  the  industry  after  the  introduction  of  exploration  and  development  of unconventional  hydrocarbons  under the  2018  framework of the  Coal  Bed  Methane  Policy, 1997?

## ANSWER

## MINISTER OF COAL AND MINES (SHRI G. KISHAN REDDY)

(a) to (c) : A statement is laid on the table of the house.

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## STATEMENT REFERRED TO IN REPLY TO PARTS (A) TO (C) OF THE LOK SABHA STARRED QUESTION NO. 252 ANSWERED ON 17.12.2025 REGARDING EXPLORATION  OF  COAL  BED  METHAN ASKED  BY  SHRI  Y  S  AVINASHH REDDY.

(a): India, with the fifth-largest proven coal resources in the world, holds significant prospects for Coal Bed Methane (CBM) exploration and production. The country's prognosticated CBM resources are estimated at about 92 TCF (Trillion Cubic Feet), and these resources are spread across  12  states  in  India  (West  Bengal,  Assam,  Chhattisgarh,  Gujarat,  Jharkhand,  Madhya Pradesh, Maharashtra, Odisha, Rajasthan, Tamil Nadu, Telangana and Andhra Pradesh). At present, fifteen (15) CBM blocks are active for the extraction of CBM across India.

(b): The  Government  has  undertaken  various  initiatives to  promote  unconventional hydrocarbon sources, including CBM, which inter alia include:

1. Policy Reforms: The CBM Policy, 1997, was introduced to promote CBM development, under which an MoU was signed between the Ministry of Coal (MoC) and the Ministry of Petroleum and Natural Gas (MoPNG) to work jointly. As per the policy, MoPNG became the administrative ministry, and the Directorate General of Hydrocarbons (DGH) was designated as the nodal agency. In consultation with the Ministry of Coal, CBM blocks were identified and offered in coal-bearing areas.

In  2018,  the  Government  of  India  notified  a  Policy  Framework  for  Exploration  and Exploitation of Unconventional Hydrocarbons in existing acreages under existing Production Sharing Contracts (PSCs), Coal Bed Methane (CBM) contracts, and nomination fields.

Additionally, in 2018, the Government of India notified the consolidated terms and conditions for granting exploration and exploitation rights to Coal India Limited (CIL) and its subsidiaries for coal-bearing areas for which they possess a mining lease for coal.

2.   CBM Bidding Rounds: The Government has conducted six competitive CBM bidding rounds to date, in which 40 blocks have been awarded. As of now, 15 CBM blocks are active under  exploration,  development,  or  production  phases.  Further,  the  Government  of  India launched the Special CBM Bid Round (SCBM)-2025 under the ambit of the Open Acreage Licensing  Policy  (OALP)  on  15  April  2025.  SCBM-2025  offers  three  Coal  Bed  Methane (CBM) blocks covering an area of 520 sq. km.

3.  Infrastructure Strengthening: The CBM blocks are being connected to the National Gas Grid  (Urja  Ganga  Pipeline),  which  has  resolved  long-standing  offtake  issues  by  enabling seamless transportation of CBM gas across various sectors.

With these efforts, around 1,210 wells have been drilled in CBM blocks for CBM development, and the country is currently achieving a CBM production level of around 2.27 MMSCMD.

(c):  The  introduction  of  the  2018  'Policy  Framework  for  Exploration  and  Exploitation  of Unconventional Hydrocarbons' has expanded the scope of activities permissible under existing CBM contracts  by  allowing  operators  to  explore  and  extract  shale  gas  within  their  CBM leasehold areas. This policy reform is expected to strengthen the future prospects of the industry by facilitating the development of additional unconventional hydrocarbon resources.

The Government of India (GoI) is in pursuit of establishing CBM resources in unexplored coal-bearing areas by taking up an exploration drive to further enhance the CBM acreages. Additionally,  GoI  is  looking  for  alternatives  by  analysing  the  potentialility  of  CBM production in abandoned or de-coaled mines, which may not be suitable for coal mining.

Coal India Limited (CIL) and its subsidiaries are actively looking for coal-bearing areas under their  leasehold  to  award  for  CBM  exploration  and  production.  As  per  GoI  policy  2018, wherein CIL and its subsidiaries were granted CBM rights in their leasehold areas, Bharat Coking Coal Limited (BCCL), a subsidiary of CIL, has awarded one CBM block (area-24 Sq.km) in Jharia for CBM exploration and production.

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