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India Launches Auction for Coal Bed Methane and Oil & Gas Blocks to Boost Domestic Energy Output

New Delhi, April 16, 2025 — In a major push towards energy self-reliance, the Government of India has launched an auction for three coal bed methane (CBM) blocks and 55 small discovered oil and gas fields. This initiative is part of a broader strategy to enhance domestic hydrocarbon production and reduce dependence on energy imports.

According to the Directorate General of Hydrocarbons (DGH), two of the CBM blocks are located in West Bengal, while the third is in Gujarat. The blocks on offer have been selected based on their commercial potential and are expected to attract investment from both domestic and international players.

Pallavi Jain Govil, Additional Secretary in the Ministry of Petroleum and Natural Gas and head of the DGH, officially announced the auction during an event held in New Delhi. She emphasized that India aims to significantly expand its exploration acreage and develop untapped energy resources to meet growing demand.

“We are committed to increasing domestic production and moving towards energy independence. This auction marks a step forward in opening up new areas for exploration and production,” said Govil.

In addition to launching the auction, the government also signed contracts for previously offered oil and gas blocks under earlier bidding rounds. Key players including Oil and Natural Gas Corporation (ONGC), Oil India Limited, Vedanta, and Hindustan Oil Exploration Company (HOEC) have secured new exploration rights.

  • ONGC bagged 11 blocks independently and additional blocks in partnership with BP and Reliance Industries.
  • Oil India Limited secured six blocks.
  • Vedanta signed contracts for seven blocks.
  • HOEC was awarded one block.

The government has also set a target to expand exploration coverage to 1 million square kilometers by 2030. Furthermore, policy reforms are underway to ease exploration norms and unlock new potential in India’s Exclusive Economic Zone.

India currently imports over 80% of its crude oil requirement, making increased domestic output critical for energy security and economic stability.

This strategic move not only encourages investment in conventional hydrocarbons but also promotes exploration in unconventional sectors like coal bed methane, which has significant untapped potential in India.

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