Key Points
India expanding CBM blocks to 15 with strategic policy reforms
Innovative drilling technologies enhancing gas extraction efficiency
USD 16.64 million committed to new exploration blocks
Reducing dependence on imported natural gas
With strong policy support, technological advancements, and rising investments, the CBM sector presents a lucrative opportunity for both domestic and international energy companies.
With policy reforms and advanced drilling technologies, CBM production is expected to grow significantly, helping reduce reliance on conventional fossil fuels.
India is taking major steps to develop CBM as a key energy source, creating new investment opportunities in the unconventional hydrocarbon sector.
The government has been actively working to expand CBM exploration. Through two special bid rounds in 2021 and 2022, seven new CBM blocks were added, bringing the total number to 15 blocks.
These new blocks come with a committed investment of USD 16.64 million for exploration, signaling strong interest from energy companies in India's CBM reserves.
To support CBM development, the government introduced the Policy for Exploration and Exploitation of Unconventional Hydrocarbons.
This policy provides greater operational flexibility to companies and is further strengthened by a Joint Standing Mechanism, which helps resolve any overlaps between coal mining and CBM extraction. These measures aim to ensure smoother operations and faster implementation of CBM projects.
In a bid to improve efficiency and output, India is adopting Multi-Lateral Horizontal Well drilling, a cutting-edge technique that is expected to increase CBM production by 30 per cent compared to conventional methods. This innovation will enhance gas extraction efficiency, making CBM production more commercially viable.
At present, India has 15 operational CBM blocks covering 7,009 square kilometres. Among them, five blocks are in the exploration phase, six are in production, two are under development, and two are under Petroleum Exploration License (PEL).
The current production rate of CBM stands at 2.2 million metric standard cubic meters per day (MMSCMD), with a total investment of USD 2.6 billion made up to March 2024. Cumulative CBM production has reached 7.08 billion cubic meters (BCM) as of February 2025.
