In a strategic move to bolster domestic energy production, India has initiated the auction of three coal bed methane (CBM) blocks, alongside 55 small discovered oil and gas fields. The CBM blocks are located in West Bengal and Gujarat, regions known for their rich coal reserves. This initiative, announced by Pallavi Jain Govil, Director General of Hydrocarbons, aims to reduce India's reliance on imported oil, which currently accounts for over 80% of its daily consumption exceeding 5 million barrels.

The auction is part of a broader effort to tap into India's estimated 2,600 billion cubic meters of CBM reserves. Experts suggest that harnessing just 10% of these reserves could potentially reduce the country's energy import bill by approximately USD 2 billion, while also contributing to lower emissions.

In addition to the auction, contracts have been signed with various companies for exploration and production in previously offered blocks. State-owned Oil and Natural Gas Corporation (ONGC) secured 11 blocks, including a joint venture with BP and Reliance Industries. Oil India acquired six blocks, while private firms such as Vedanta and Hindustan Oil Exploration Company obtained seven and one blocks, respectively.

This concerted push towards CBM and other unconventional gas sources underscores India's commitment to achieving energy self-sufficiency and mitigating environmental impact. By leveraging domestic resources, the country aims to meet its growing energy demands sustainably.