Reliance Industries and Essar Lead Bids in Coal-Based Methane Blocks as India Expands Domestic Gas Exploration

India’s efforts to expand domestic natural gas production have gained traction with fresh interest in coal-bed methane (CBM) exploration blocks. 

Recent bidding rounds have drawn participation from private and public sector companies, with varying levels of competition across blocks. The developments highlight both the opportunities and constraints in tapping gas resources embedded in coal seams.

What Do the Latest CBM Bidding Results Indicate?

Reliance Industries Ltd and the Essar Group have emerged as leading bidders in the latest coal-bed methane (CBM) exploration rounds conducted by the Directorate General of Hydrocarbons.

The government offered a total of 16 blocks across the 2025 and 2026 special CBM bid rounds. These blocks are aimed at increasing exploration and production of gas trapped within coal seams.

How Did Other Energy Players Participate?

Participation across bidders remained selective:

• Oil India Ltd bid for three blocks
• Oil and Natural Gas Corporation did not participate in these rounds

Reliance bid for three blocks in the 2026 round, while Essar’s exploration arm secured bids across both 2025 and 2026 rounds.

Distribution of Bids Across Blocks

The bidding outcomes reveal uneven interest:

• Several blocks received only a single bid
• A few attracted competitive bidding
• Some blocks did not receive any bids

In the 2025 round, two blocks saw multiple bidders, while in the 2026 round, most awarded blocks had limited competition.

Reliance emerged as the sole bidder in select blocks located in Chhattisgarh and Odisha, while Essar and Oil India competed in certain regions such as Madhya Pradesh and Telangana.

Where Are These CBM Blocks Located?

The offered blocks are spread across key coal-bearing regions, including:

• Chhattisgarh (Mand-Raigarh coalfield)
• Odisha (IB Valley)
• Telangana (Godavari Valley)
• Madhya Pradesh (Singrauli coalfield)

These areas fall under Category II and III basins, where allocation is based on the extent of the committed work programme, such as drilling activity.

Why CBM Matters for India’s Energy Strategy?

CBM is viewed as part of India’s broader strategy to reduce dependence on imported natural gas. By utilising domestic coal-based gas resources, the country aims to diversify its energy mix while managing emissions more effectively.

However, varying bidder interest and past relinquishments indicate that geological complexity and economic considerations remain key factors.

Reliance Industries Share Price Movement

Reliance Industries Limited was trading at ₹1,366.70 as of 21 April 2026, reflecting a marginal increase of ₹3.40 or 0.25% compared to the previous close of ₹1,363.30.

Read More: SEBI Approves NSE Investment in National Coal Exchange of India.

Conclusion

The latest CBM bidding rounds reflect a measured level of interest from energy companies, led by Reliance and Essar. While the government continues to push for greater domestic gas production, the mixed response across blocks highlights ongoing challenges in exploration and commercial viability.

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