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Unconventional Petroleum Resources 127
like Cambay,Krishna-Godavari (KG) and
Damodar Valley can significantly help meet
the growing energy demand.
• Gas Hydrates:
Gas hydrate deposits, located in the KG and
Mahanadi offshore represent a significant
untapped energy resource. Although
commercial production is still in the research
phase, gas hydrates could provide a substantial
boost to India’s future energy security.
7.2.2 Economic Growth
The development of unconventional
hydrocarbons contributes to economic
growth through job creation, infrastructure
development, and revenue generation.
CBM sector alone has generated significant
employment in the states of Madhya Pradesh,
Jharkhand and West Bengal.
As of 31.03.2025, USD 2.6 billion has been invested
for exploration, development, and production 5. In 2017, a policy framework for Early
activities in eight operational CBM blocks. CBM
production contributed USD 148 million as
Royalty to State Governments and USD 7 million
to the Central Government.
7.3 Status of Unconventional
Hydrocarbons
7.3.1 Coal bed Methane (CBM) 6. In 2018, the Government of India notified
• Governing Policies:
1. In 1997, the Government of India formulated
a policy for the development of Coal
Bed Methane (CBM). A Memorandum of
Understanding (MoU) was signed between
the Ministry of Coal (MoC) and the Ministry of
Petroleum and Natural Gas (MoPNG) to work
cooperatively on this initiative. According to 1.
the policy, MoPNG was designated as the
administrative ministry, with the Directorate
General of Hydrocarbons (DGH) appointed
as the nodal agency for CBM development
in India.
2. In 2007, CBM Phases & Extensions Policy
was framed to provide a transparent and
consistent framework for granting extension
in exploration phases, under CBM Contracts.
3. In 2015 (re-notified in 2018), the Government
of India, granted permission to Coal
India Limited (CIL) and its subsidiaries to
explore and produce CBM from its areas
under Coal Mining Lease allotted to them,
thereby, dispensing the requirement of
having additional License from Ministry
of Petroleum and Natural Gas. This was
formulated to increase the area under CBM
exploration and to enhance and accelerate
the CBM production in the country from
Coal mining areas.
4. In 2016, Unified Licensing Policy under
Hydrocarbon Exploration and Licensing
Policy (HELP) was introduced wherein
all types of hydrocarbon resources, both
conventional and unconventional were
allowed to be explored and exploited. The
Open Acreage Licensing Policy (OALP) to
carry out exploration and production from
areas which are either, free or relinquished
and Discovered Small Field (DSF) Policy to
exploit resources from already discovered
fields are two such policies within the HELP
regime.
Monetization of CBM was introduced to
develop alternate sources of natural gas
including CBM and promote gas economy.
This policy was formulated to provide
marketing and pricing freedom for Coal
Bed Methane (CBM) and streamline the
operational issues in the existing blocks.
a Policy framework for Exploration
and Exploitation of Unconventional
hydrocarbons in existing acreages under
existing Production Sharing Contracts (PSC),
Coal Bed Methane (CBM) Contracts and
Nomination fields.
• Award of CBM acreages
As per extant CBM policy 1997, The Ministry of
Coal, through the Central Mine Planning and
Design Institute (CMPDI), conducted studies
to identify prospective CBM areas within the
coal-bearing regions of the country. From
2001 to 2008, four CBM bidding rounds were
held, resulting in the award of 30 CBM blocks.
Additionally, two blocks were allocated on
a nomination basis, and one block was
awarded through the Foreign Investment
Promotion Board (FIPB) route in the year
2001. During this period (2001-2008), a total
area of 16,598 square kilometres was awarded
for CBM exploration and production. These
awarded blocks were located across various
states including Andhra Pradesh, Assam,