November 21, 2008

RIL lignite plan in Rajasthan hits hurdle

BS reported that Reliance Industries Limited's efforts at straddling the entire energy basket from crude, coal and right down to lignite called brown coal have hit a bump. RIL is looking at pumping gas trapped between layers of lignite from the acreage. This is similar to tapping gas from between coal seams, called coal bed methane in industry parlance

As per report, RIL's move to secure a reconnaissance permit for lignite in Rajasthan's Barmer district has come under question as the area identified by it overlaps with acreage marked by government for the coal ministry's regional promotional exploration scheme.

Neyveli Lignite Corporation, however, has told the coal ministry that the area proposed by RIL is overlapping with acreage marked for center’s special scheme. Under this scheme, government run companies undertake exploration with a view to ensuring regional development in prospecting for coal or lignite.

RIL had sought the reconnaissance permit for a 74.34 square kilometers area in the Sanchore basin of Barmer district in western Rajasthan. RIL executives were unavailable for comment but government officials said this area was meant for prospecting by state owned gas utility GAIL, though the state government was yet to officially indicate it.

Barmer is home to one of the biggest oil finds of recent times, made by UK's Cairn Energy and has various agencies working with aim of tapping gas trapped in layers of coal or turn coal into gas.