BCCL inks Rs 1,800 cr CBM extraction pact with Prabha Energy

22 Sep 2021 CW Team

Coal India subsidiary Bharat Coking Coal Limited (BCCL) has entered an agreement with Ahmedabad-based Prabha Energy Pvt Ltd to extract coal bed methane (CBM).

For Jharia Block-I in Jharkhand, the two companies have signed a revenue-sharing contract worth Rs 1,800 crore.

The BCCL will contribute Rs 370 crore to the land cost, with the remaining cost being covered by Prabha Energy, a CBM developer. BCCL is the owner of the block.

Jharia CBM Block-I, according to the company, has a resource of around 25 billion cubic metres (BCM) and a daily production capacity of 1.3 million metric standard cubic metres.

The project will be completed in three stages. The first phase of exploration will last two years after the contract is signed, followed by a three-year pilot phase. The production phase will last for 30 years.

CBM extraction, according to a statement from the company, is part of CIL's diversification portfolio under clean coal initiatives.

The project will be overseen by the consulting arm of CIL, Central Mine Planning and Design Institute(CMPDI).The captured gas can be used for a variety of commercial purposes, according to the company.

GAIL is preparing to commission a gas pipeline in eastern India as part of the URJA Ganga project. The CBM produced could be used for city gas distribution or distributed to potential users via a pipeline.

In a joint venture with state-owned Oil and Natural Gas Corporation (ONGC) and Oil India Ltd, Prabha Energy already has a CBM block in Jharkhand, North Karanpura (OIL).The gas from this block is supposed to be purchased by GAIL, a state-owned company.

ONGC announced in 2018 that it would sell gas from the North Karanpura block to GAIL for $5.56 per MMBTU.

Prabha Energy is a Deep Industries Limited subsidiary that specialises in CBM exploration and production. It has extensive experience in the exploration and production of natural gas from coal bed methane at the upstream, midstream, and downstream levels.

Since the Centre announced a CBM policy in 2005, 33 CBM acreages have been awarded.

ONGC has developed four CBM blocks from these.

After the Union Cabinet waived the requirement for obtaining a separate licence for extracting methane from coal mines in its leasehold areas, CIL decided to venture into CBM extraction in 2018.

The company then identified two CBM extraction projects in West Bengal: Jharia-I and Raniganj.

Image Source

Also read: Coking coal imports in India rose to 4.61 mt in July

Coal India subsidiary Bharat Coking Coal Limited (BCCL) has entered an agreement with Ahmedabad-based Prabha Energy Pvt Ltd to extract coal bed methane (CBM). For Jharia Block-I in Jharkhand, the two companies have signed a revenue-sharing contract worth Rs 1,800 crore. The BCCL will contribute Rs 370 crore to the land cost, with the remaining cost being covered by Prabha Energy, a CBM developer. BCCL is the owner of the block. Jharia CBM Block-I, according to the company, has a resource of around 25 billion cubic metres (BCM) and a daily production capacity of 1.3 million metric standard cubic metres. The project will be completed in three stages. The first phase of exploration will last two years after the contract is signed, followed by a three-year pilot phase. The production phase will last for 30 years. CBM extraction, according to a statement from the company, is part of CIL's diversification portfolio under clean coal initiatives. The project will be overseen by the consulting arm of CIL, Central Mine Planning and Design Institute(CMPDI).The captured gas can be used for a variety of commercial purposes, according to the company. GAIL is preparing to commission a gas pipeline in eastern India as part of the URJA Ganga project. The CBM produced could be used for city gas distribution or distributed to potential users via a pipeline. In a joint venture with state-owned Oil and Natural Gas Corporation (ONGC) and Oil India Ltd, Prabha Energy already has a CBM block in Jharkhand, North Karanpura (OIL).The gas from this block is supposed to be purchased by GAIL, a state-owned company. ONGC announced in 2018 that it would sell gas from the North Karanpura block to GAIL for $5.56 per MMBTU. Prabha Energy is a Deep Industries Limited subsidiary that specialises in CBM exploration and production. It has extensive experience in the exploration and production of natural gas from coal bed methane at the upstream, midstream, and downstream levels. Since the Centre announced a CBM policy in 2005, 33 CBM acreages have been awarded. ONGC has developed four CBM blocks from these. After the Union Cabinet waived the requirement for obtaining a separate licence for extracting methane from coal mines in its leasehold areas, CIL decided to venture into CBM extraction in 2018. The company then identified two CBM extraction projects in West Bengal: Jharia-I and Raniganj. Image SourceAlso read: Coking coal imports in India rose to 4.61 mt in July

Infrastructure Urban

02 Jun 2026

VECV Sales Rise 7.8 Per Cent In May 2026

VE Commercial Vehicles recorded sales of 7,978 units in May 2026, compared to 7,401 units in May 2025, registering growth of 7.8 per cent. This included 7,789 units from the Eicher brand and 189 units from the Volvo brand.Eicher branded trucks and buses reported sales of 7,789 units during the month, up 7.3 per cent from 7,258 units a year earlier. In the domestic commercial vehicle market, Eicher sales rose 9.1 per cent to 7,375 units from 6,758 units in May 2025.Exports declined 17.2 per cent to 414 units from 500 units in the corresponding month last year. Volvo Trucks and Volvo Buses recor..

Infrastructure Urban

02 Jun 2026

Table Space Strengthens DESYN Leadership Team

Table Space has announced strategic leadership appointments within DESYN, its integrated Design and Build business, as it looks to strengthen operations across key enterprise and GCC markets in India. DESYN was launched as a strategic extension of Table Space’s workspace solutions portfolio to meet rising demand for agile, high-quality and rapidly deployable enterprise workspaces.Shruti Ookabhoy has joined DESYN as Executive Director and will lead the Design vertical, focusing on design capability, operational excellence and team development across markets. She brings over 22 years of experi..

Infrastructure Transport

02 Jun 2026

Concord Associate Bags Rs 2.79 Bn Kavach Order

Concord Control Systems said its associate company, Progota India, has received a Rs 2.79 bn domestic order from Indian Railways for the supply, installation, testing and commissioning of on-board Kavach 4.0 loco equipment.The order is scheduled for execution within 12 months and strengthens Concord’s role in India’s railway safety and signalling ecosystem. Kavach is India’s indigenous automatic train protection system, designed to improve operational safety by helping prevent signal passing at danger and reducing collision risks.Gaurav Lath, Joint Managing Director, Concord Control Syst..