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The government has accorded its permission to coal India for producing natural gas (CBM) from coal seams in mining leases that it already holds.
Coal India till now was allowed to mine only coal from its mines or leases.
Coal India and its subsidiaries has been allowed by the Ministry of Petroleum and Natural Gas in a November 3 order, to explore coal bed methane (CBM) gas in mining leases they possess .
However, the order further said that Coal India Ltd (CIL) will not be allowed to “alienate CBM lease rights”. It can even not involve a third party for CBM exploration except Central or State PSUs with experience in CBM mining lease, Coal India will possess the majority stake.
