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GOVERNMENT OF INDIA
MINISTRY OF COAL
LOK SABHA
UNSTARRED QUESTION NO. 566
ANSWERED ON 22/07/2026
EXPLORATION OF COAL BED METHANE
566. SHRI RAMASAHAYAM RAGHURAM 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 STATE FOR COAL AND MINES
(SHRI SATISH CHANDRA DUBEY)
(a): India, with the fifth-largest 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 Trillion Cubic Feet (TCF), 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, fourteen (14) CBM blocks are active for the extraction of CBM across India.
(b): The Government has undertaken various initiatives to promote and harness Coal Bed
Methane (CBM), including unconventional hydrocarbon sources, 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.
1Additionally, 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, 14 CBM blocks are active
under exploration, development, or production phases. Further, two Special CBM Bid Rounds,
SCBM-2025 and SCBM-2026, under the ambit of the Open Acreage Licensing Policy (PALP),
are in progress.
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 1,232 wells have been drilled in CBM blocks for CBM development,
and the country is currently achieving a CBM production level of around 2.28 million metric
standard cubic meters per Day (MMSCMD).
(c): Government vide notification dated 08.05.2018 granted rights to explore and produce
CBM from coal-bearing areas where they hold mining leases to Coal India Limited (CIL) and
its subsidiaries. CIL and its subsidiaries also identify coal-bearing areas under their leasehold
for award towards CBM exploration and production.
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