Memorandum of Understanding signed in presence of Chief Minister
HYDERABAD: The Singareni Collieries Company Limited (SCCL) and the Oil and Natural Gas Corporation (ONGC) have signed a Memorandum of Understanding (MoU) to cooperate in the service, operation, process development and research related to underground and surface coal gasification and coal bed methane in coal-bearing areas of SCCL.
Chairmen and Managing Directors of SCCL and ONGC -- R.H. Khwaja and Subir Raha respectively -- signed the memorandum in the presence of Chief Minister Y.S. Rajasekhara Reddy here on Saturday.
Speaking on the occasion, the Chief Minister expected the surface coal gasification and coal bed methane (CBM) projects to be commercially operational in two years.
Mr. Raha said the ONGC had been working on CBM technology since 1997. It had taken up a pilot project in Bokaro in 2001. The first CBM block was likely to be commercially operational in 2007.
He also said the ONGC took up extensive operations in underground coal gasification (UCG) in Gujarat. The technology caused least damage to environment. Mining by the surface coal gasification proved to be profitable.
Mr. Raha said the investment of ONGC in the projects could not be estimated immediately as the feasibility studies on their commecial viability would take nine months to one year.