ONGC, NTPC Attain Pact On CBM, Coal Mining Blocks

New Delhi: Oil and Natural Gas Corporation Ltd (ONGC) and NTPC Ltd seem to have settled a key issue on the exploitation of coal block in a situation where the coal seams bear both coal bed methane (CBM) gas as well as coal. This could well pave the way for tie up between the two corporates to exploit the block. A joint working group (JWG) establish by the two companies to work out a mechanism for simultaneous exploitation of block for CBM and coal mining have agreed on a possible sequential operation by them in the area. ONGC had expressed worry over the allotment of three coal blocks awarded to it for extracting CBM to other three companies for mining coal one in West Bengal and two in Jharkhand. The blocks in question have also been allotted to NTPC (Jharkhand), Electrosteel and Casting Ltd (Jharkhand), and West Bengal Mineral Development and Trading Corporation (West Bengal) for coal mining.