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

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

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

Next Story
Infrastructure Urban

India To Invest $37 Billion To Boost Petrochemical Capacity

India is set to become a major global player in the petrochemicals industry, driven by a planned capital expenditure of $37 billion (Rs 3.1 trillion) aimed at reducing import dependency and enhancing self-sufficiency, according to S&P Global Ratings.In its latest report titled “First China, Now India: Self-Sufficiency Goals Will Add To Petrochemicals Supply”, S&P said India’s large-scale capacity expansion—mirroring China’s earlier push—will likely intensify oversupply pressures in Asia’s petrochemical markets.Currently the world’s third-largest petrochemical consumer a..

Next Story
Infrastructure Transport

Indian Railways Expands Global Exports Of Rail Equipment

Indian Railways has announced that it is rapidly emerging as a global exporter of railway equipment, including bogies, coaches, locomotives, and propulsion systems, under the government’s ‘Make in India, Make for the World’ initiative.According to an official statement, India’s railway products are now reaching over 16 international markets, reflecting the country’s growing capacity to design, develop, and deliver world-class rail solutions.Metro coaches have been exported to Australia and Canada; bogies to the United Kingdom, Saudi Arabia, France, and Australia; propulsion systems t..

Next Story
Infrastructure Transport

RailTel Awards Rs 163 Million Contract To RTNS Technology

RailTel Corporation of India Limited (RailTel), a Mini Ratna Public Sector Undertaking, has awarded a domestic work order worth Rs 163 million to RTNS Technology Private Limited.The contract, issued on 30 September 2025, involves the supply and installation of equipment and related services for one of RailTel’s key customers. The project underscores RailTel’s commitment to advancing technology and communication infrastructure through collaboration with domestic system integrators.RTNS Technology Private Limited, an ISO-certified system integrator, provides comprehensive solutions for perim..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?