Coal India is planning to outsource coal bed methane production to global operators and will set aside Rs 3,000 crore to part-finance the initiative.
Quoting a senior Coal India executive, a report in ET said, “We plan to appoint global mining development operators (MDO) for outsourcing methane production from Coal India’s blocks.”
“They would be undertaking the initial investments necessary for setting up extraction and production facility. Coal India would be paying them on the basis of production volumes they achieve, while the marketing and sale of the gas produced would be undertaken by Coal India and its subsidiaries,” the official further said.
Coal India Limited is an Indian state-controlled coal mining company headquartered in Kolkata, West Bengal, India and the largest coal-producing company in the world and a maharatna company.
Image Credit : static.dnaindia.com