Coal India’s Jharkhand project may be completed this year

Kolkata: After a decade since it was launched in 1997, the UNDP-GEF (Global Environmental Facility) funded coal bed methane development project undertaken by Coal India Ltd (CIL) at Moonidh–Sudamdih in Jharia coalfields in Jharkhand, is expected to be completed this year.

The $19.2-million (Rs 76 crore) project was aimed to promote production and commercial utilisation of CBM in the country. Of the total project cost approximately $10 million was funded as GEF grant.

Originally slated for completion in five years, the project has undergone several rounds of revision in time schedule and project specifications.

While the delay in completion is expected to impact the project cost, commercial exploitation of CBM is now a reality in India and is attracting private capital from India and abroad.

According to sources, the project aims generating one MW gas-based power for internal consumption at Moonidih and setting up a CNG station at Sudamdih for refuelling of approximately 50 dumpers, trucks or other such motorised mining equipment.

“The project is now in the final stages of completion and we are hopeful that it will be fully commissioned in 2007,” a CIL source said.

According to sources, the delay was caused mainly due to lack of experience and difficulties in procuring equipment.

Finally, in October 2004, $7.8 million worth of equipment had been ordered and drilling was set to commence in 2005-06.