New Delhi They can do so by paying a fee, but must sell the mined fuel back to govt at a discount
Stepping up the gas on coal production, the government proposes to allow companies exploring coal bed methane (CBM) to simultaneously mine coal from the same block. Permission may be given to both existing and new operators of CBM blocks to undertake coal mining in the same fields. As of now, CBM blocks, characteristically much larger than coal blocks, cannot be mined for coal until the gas venture is completed and the field surrendered to the government after the 35-year lease. This has reduced the area for coal mining for a long duration, increasing pressure on coal companies facing stagnant production.