**Executive Summary**
This document contains the response of the Minister of Coal and Mines, Shri G. Kishan Reddy, to Lok Sabha Starred Question No. *252, answered on December 17, 2025, regarding the exploration of Coal Bed Methane (CBM) in India. The response addresses India's potential in CBM exploration, steps taken by the government to harness CBM, and the future of the industry post the 2018 Coal Bed Methane Policy framework. A statement detailing the answers to the questions was laid on the table of the house.
**Key Points / Main Content**
* **CBM Potential in India:**
* India holds significant CBM exploration and production prospects, possessing the fifth-largest proven coal reserves globally.
* Estimated CBM resources are approximately 92 TCF, spread across 12 states.
* Fifteen CBM blocks are currently active for CBM extraction.
* **Government Initiatives for CBM Promotion:**
* **Policy Reforms:**
* The CBM Policy, 1997, was introduced to promote CBM development.
* The 2018 framework expanded exploration in existing acreages, including Coal Bed Methane (CBM) contracts, and nomination fields.
* Terms and conditions were notified for Coal India Limited (CIL) and its subsidiaries for exploration rights in coal-bearing areas.
* **CBM Bidding Rounds:**
* Six CBM bidding rounds have been conducted, awarding 40 blocks.
* 15 CBM blocks are active for exploration, development, or production.
* The Special CBM Bid Round (SCBM)–2025 offers three CBM blocks covering 520 sq. km.
* **Infrastructure Strengthening:**
* CBM blocks are being connected to the National Gas Grid (Urja Ganga Pipeline).
* Approximately 1,210 wells have been drilled, with a current production level of around 2.27 MMSCMD.
* **Future of the Industry Post-2018 Policy:**
* The 2018 framework allows operators to explore and extract shale gas within CBM leasehold areas.
* This is expected to strengthen the industry's future by facilitating the development of additional unconventional hydrocarbon resources.
* Government seeks CBM resources in unexplored areas and assesses CBM potential in abandoned mines.
* Bharat Coking Coal Limited (BCCL) has been awarded one CBM block in Jharia for exploration and production.
**Impact Analysis**
**Stakeholder: Ministry of Coal (MoC) and the Ministry of Petroleum and Natural Gas (MoPNG)**
* **Impact:** Required to work jointly for CBM development, as per the CBM Policy, 1997.
* **Action Required:** Continue collaboration on policy implementation and CBM block identification.
**Stakeholder: Directorate General of Hydrocarbons (DGH)**
* **Impact:** Designated as the nodal agency for CBM development as per the CBM Policy, 1997.
* **Action Required:** Oversee CBM development and consult with the Ministry of Coal.
**Stakeholder: Coal India Limited (CIL) and its subsidiaries**
* **Impact:** Granted CBM rights in their leasehold areas as per the 2018 policy.
* **Action Required:** Actively pursue CBM exploration and production in coal-bearing areas.
**Stakeholder: CBM Operators**
* **Impact:** Allowed to explore and extract shale gas within CBM leasehold areas due to the 2018 policy.
* **Action Required:** Utilize opportunities for unconventional hydrocarbon resource development.
Key Entities Referenced
Coal Bed Methane (CBM): A naturally occurring gas found in coal seams, and the subject of exploration and production.
CBM Policy, 1997: The initial policy introduced to promote CBM development.
Policy Framework for Exploration and Exploitation of Unconventional Hydrocarbons: A 2018 framework that expanded the scope of activities permissible under existing CBM contracts.
Ministry of Coal: The ministry responsible for coal, involved in CBM policy.
Coal India Limited (CIL): A major coal producer with subsidiaries actively involved in CBM exploration and production.
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.
*****
1STATEMENT 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.
2The 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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