Coal Bed Methane (CBM) is stored in coal seams and was generated during the process of coalification. It occurs within these seams either as free gas in fractures or in dissolved form in water.

The consortium of GAIL (India) Ltd., Arrow Energy (India) Pty Ltd., EIG Energy Infrastructure Group AB has been awarded 3 CBM Blocks in CBM-III Bidding round. The Tata Power Company is also a consortium partner in two of the awarded blocks. These blocks are in Rajmahal (Jharkhand), Mand Raigarh (Chattisgarh) and Tata Pani Ramkola (Chattishgarh). Two CBM blocks (Rajmahal and Mand Raigarh) have been relinquished by the consortium.