Delhi: Coal India Ltd (CIL) has agreed to join hands
with ONGC to establish " in situ" coal gasification
projects. An MoU for this is under formulation under which,
both organisations will have equal participation both
in terms of investment and benefits.
coal gasification technology would be established in an
area where coal mining may not be cost-effective due to
geo-mining difficulties. The gas, which will be extracted,
will be used by CIL for generating power. In other words,
CIL has plans to enter the power generation business,
and the generated power will be sold to the power grid.
has been decided that the share of CIL in this venture
will be in the form of land used and the coal resources
and ONGC have formed another joint venture to produce
coal bed methane. The union government has allocated two
blocks, one in Raniganj and the other in the Jharia coalfields
on a nomination basis to the consortium of CIL and ONGC.
Petroleum exploration licence for both the blocks have
been obtained from the respective state governments.
The Central Mine
Planning and Design Institute will participate in this
joint venture on behalf of CIL.