NEW DELHI, July 19: In an attempt to meet the growing demand for gas, the government today for the first time approved exploration and exploitation of coal bed methane (CBM) in the country.

The proposal of Foreign Investment Promotion Board (FIPB) in this regard was given the green signal by the Cabinet Committee on Economic Affairs (CCEA) at its meeting here, an official spokesman said.

As against the availability of 64 million cubic meters per day of natural gas, the current domestic demand is put at 89 million cubic meters per day. This was expected to shoot up to 146 million cubic metres per day by the turn of the century.

To bridge the demand-supply gap, the spokesman said the cabinet had given its approval and that blocks for exploitation of coal bed methane would be offered through the competitive bidding system. The award of CBM blocks will be made by the CCEA based upon the recommendations of an empowered committee of secretaries.

While the petroleum and natural gas secretary will be the chairman of the committee, the finance, coal and the law secretaries would be its members.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.