Question : Production of Oil and Gas from Coal by CIL

(a) whether the Coal India Limited (CIL) is contemplating a major diversification initiative to produce oil and gas from its coal in a big way;
(b) if so, the details and the objective thereof;
(c) whether the CIL also plans to enter into commercial production of coal bed methane and to expand its presence in the thermal and solar power generation and if so, the details thereof and the timeframe for the same; and
(d) the steps taken by the Government to improve the core activity of CIL which is declining?

MINISTER OF STATE (INDEPENDENT CHARGE) IN THE MINISTRY OF COAL, POWER, NEW AND RENEWABLE ENERGY AND MINES (SHRI PIYUSH GOYAL)

(a)& (b): Coal India Limited (CIL) is exploring the technical possibilities for cleaner utilization of coal. In this direction, an Expression of Interest (EOI) has been floated on 28.02.2017 for inviting offers for Pre-Qualification of Licensors of Coal Gasification Technology for Setting up of Coal to Methanol Plant in the premises of Dankuni Coal Complex, West Bengal.
(c): Under the CBM policy, Oil & Natural Gas Corporation (ONGC) and CIL are joint partners in developing Jharia Coal Bed Methane (CBM) block and Raniganj North CBM block. These CBM blocks were given to the consortium of CIL and ONGC on nomination basis by the Government. Both the blocks have entered into development phase.
Further, Government has permitted CIL and its subsidiary companies to take up exploration and exploitation of Coal Bed Methane on commercial lines from the coal bearing areas for which they possess mining lease for coal. Under this arrangement CIL has identified two areas one each in Raniganj coal field and Jharia coalfield for extraction of CBM from the existing mining leases. Gas assessment from these areas is under study. On completion of the relevant studies and other statutory clearances, these blocks are expected to commence production in 2020-21.
Regarding plan for solar power generation, CIL has entered into an MoU with Solar Energy Corporation of India (SECI) for developing 1000 MW solar photovoltaic projects. Initially, it is proposed to develop 2x100 MW solar photovoltaic project in the State of Madhya Pradesh and the power generated will be used for captive purposes.
(d): The core activity of CIL is to produce and market the planned quantity of coal to provide energy security to the country. Production and Off-take of coal of CIL in the last three years is given in the Table below, which shows that there has been continuous increase in coal production and off-take.
Year Production (MT) Off-take
(MT)
2013-14 462.42 471.58
2014-15 494.24 489.38
2015-16 538.75 534.49

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