This is the government’s second round of offering under its CBM policy.

Most of the interest has come from local companies including ONGC, GAIL (India), Coal India, Mudra Ispat, Great Eastern Energy Corporation, Reliance Industries and Gujarat State Petroleum Corporation.

Bidding also came from US-based Tri-star India Trading Company, a subsidiary of Tri-star Petroleum Company.

The winning bids will be decided on and granted by the Indian government by mid-February next year.

The Indian government first showed interest in commercial exploration of CBM in 1994 after several Indian and foreign companies showed keen interest in the country’s reserves.

In 2000 the United Nations Development Programme gave a grant of US$9.19 million to the Ministry of Coal for the investigation of CBM in Bihar–Bengal coalfields.

The UN project is likely to generate useful data on CBM and, after successful completion in 2005, is likely to generate more confidence in the prospective investors.

The Indian government has already taken a major step by signing eight contracts for exploration and production of CBM in the country.

India is the third largest producer of coal and has the sixth largest coal reserves in the world.