Reliance Industries Ltd and Essar Group have emerged as the leading bidders for 16 coal-bed methane (CBM) blocks offered across two consecutive bidding rounds, according to the Directorate General of Hydrocarbons (DGH).
State-run Oil India Ltd (OIL) placed bids for three blocks, while India’s largest oil and gas producer, ONGC, did not participate.
The government offered three CBM blocks in the Special CBM Bid Round 2025 and another 13 blocks in the 2026 round. Bids for both rounds closed on March 5.
CBM, or coal seam gas, is natural gas trapped in coal seams underground. It is considered a cleaner fuel and is used for power generation, heating, and industrial applications. It can also be converted into CNG for vehicles or supplied to households for cooking. It produces fewer emissions than coal when burned.
All the blocks offered fall under Category II and III basins, where bidders offering the highest work programme—typically drilling more wells—are awarded the blocks.
Reliance bid for three of the 13 blocks in the 2026 round. Essar Oil and Gas Exploration and Production Ltd (EOGEPL) bid for three blocks in the 2026 round and two of the three blocks offered in 2025.
According to DGH, one block in the 2025 round and seven in the 2026 round received no bids. Of the six blocks that attracted bids in 2026, four saw only a single bidder. In contrast, both blocks in the 2025 round received multiple bids.
Reliance was the sole bidder for two blocks—SR-ONHP (CBM)-2026/4 in the Mand-Raigarh coalfield in Chhattisgarh and SR-ONHP (CBM)-2026/5 in the IB Valley coalfield in Odisha. It also competed with EOGEPL for the PG-ONHP (CBM)-2026/5 block in the Godavari Valley coalfield in Telangana.
EOGEPL was the only bidder for the PG-ONHP (CBM)-2026/3 block in the Godavari Valley coalfield, while OIL was the sole bidder for the SR-ONHP (CBM)-2026/1 block in the Singrauli coalfield in Madhya Pradesh. OIL and EOGEPL also competed for another block in the same coalfield.
In the 2025 round, two blocks in the Singrauli coalfield of Madhya Pradesh drew multiple bids. One block saw participation from EOGEPL, Prabha Energy, and a consortium of Oilmax Energy and SAS Infotech Pvt Ltd. The other attracted bids from OIL, EOGEPL, Oilmax-SAS Infotech, and Invenire Petrodyne.
Before these rounds, 33 CBM blocks had been awarded across four earlier bidding rounds. However, many have either been relinquished or are in the process of being surrendered due to low prospectivity.
DGH estimates the total CBM resource in these 33 blocks at about 62.4 trillion cubic feet (Tcf), of which 9.9 Tcf has so far been established as Gas in Place (GIP).
Reliance currently produces gas from two CBM blocks in Madhya Pradesh. Essar’s Raniganj East block and Great Eastern Energy Corporation’s (GEECL) Raniganj West block, both in West Bengal, are also under production.
CBM is seen as a way to reduce India’s dependence on imported natural gas by tapping domestic reserves within its large coal base.
India is the world’s third-largest gas consumer but meets about half of its demand through imports, including liquefied natural gas (LNG). Domestic production has struggled to keep pace with rising demand from sectors such as power, fertilisers, and city gas distribution, increasing exposure to global price volatility and supply risks.
CBM offers an alternative, as methane is present in coal seams across major basins such as Jharkhand, West Bengal, and Madhya Pradesh. Unlike conventional gas exploration, CBM development builds on existing coal geology, potentially lowering risk.
India’s CBM resource is estimated at over 2–3 trillion cubic metres, though only a small portion has been commercially developed so far.
Policy support has improved in recent years. The government has allowed pricing and marketing freedom for CBM producers, eased land and environmental clearances in some cases, and aligned CBM development with broader upstream reforms—steps aimed at attracting investment and boosting production.
(With inputs from PTI)