Cabinet approved Exploration and Exploitation of Coal Bed Methane


  • 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.


  • 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.


Leave a Reply