ADAG gets nod for exploration of CBM in Madhya Pradesh
Moneylife Digital Team 19 August 2010

Bhopal: The Anil Dhirubhai Ambani Group (ADAG) has been granted permission to explore coal bed methane (CBM) in the Shahdol district of Madhya Pradesh, reports PTI.

The Madhya Pradesh Directorate General of Hydrocarbons has granted Petroleum Exploration Licence (PEL) to ADAG for exploration of CBM from Sohagpur (north) block in Shahdol district, on August 11, sources said.

As per the PEL, ADAG was given permission for exploring CBM in an area of 609 sq km, sources said.

Meanwhile, ADAG officials said the group has started its operation at the site since Wednesday and after undertaking the core drilling operations, proper study would be conducted to access the resources available there.

The project of ADAG, which is setting up a 4,000 MW Sasan Ultra Mega Power Plant (UMPP) in Sidhi district, will open a new source of non-conventional energy in the state, which is in the grip of an acute power crisis for a long time, they said.

"ADAG's entry in the CBM sector is a good sign for the state," a source said.

Coal bed methane is a form of natural gas extracted from coal beds by drilling holes into coal seams and can be utilised for power generation, compressed natural gas (CNG) and fertiliser manufacturing, sources said.

Power production from CBM would not only contribute in reducing ozone layer threat but also open alternative option of electricity generation, they said, adding it is certainly a matter of pride that there were abundant CBM deposits in Madhya Pradesh.

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