MMTC is facing a complex situation while developing the Gomia underground coal block as the block overlaps with the CBM block allocated to ONGC in 2002. MMTC was allocated this block in 2009. As a result of this overlap, MMTC is facing serious problem in finalizing the mine plan.
MMTC has already completed the geological exploration of the coal block and has also signed MoU with Singareni Collieries Company Limited (SCCL) for joint development of the coal block. SCCL, who has been entrusted the responsibility to prepare the mining plan is of the opinion that specific mining issues can be addressed only after exact location coordinates of all wells planned to be drilled inside the coal blocks for CBM extraction are known. MMTC wants Ministry of Coal and Ministry of Oil and Natural Gas come out with suitable directives to avoid any ambiguity which may lead to disputes between the parties and cause further delay in project execution. MMTC plans to invest Rs. 290 crore to develop this coal block