Government signs contracts for nine coal bed methane blocks

Mumbai: The government has signed contracts for exploitation of coal bed methane gas in nine areas with three consortia, including one led by the Anil Dhirubhai Ambani Group.

While the consortium of Reliance Natural Resources Ltd, Reliance Energy Ltd and GeoPetrol International Inc signed production-sharing contracts for four blocks, a group led by Australia's Arrow Energy inked the pact for three blocks and Coalgas Mart-Deep Industries joint venture signed the PSC for two blocks.

While RNRL would look after exploration side, REL would be responsible for utilising the CBM for power generation. GeoPetrol is the operator of the consortium.

"We will be investing close to Rs100 crore in the initial phase of exploration in the four CBM blocks," an RNRL official said.

The Arrow Energy-led group plans to spend about $500-$600 million over a period of 20 years in the blocks.