GEEC readies Rs. 2,000cr investment
A master with expertise to manufacture coal bed methane (CBM) in the country, the Great Eastern Energy Corporation(GEEC), has decided to invest Rs. 2,000 crore as it is getting ready to step up production to more than 3 million cubic meters a day from its West Bengal plant in the next three years.
The Chief Operating Officer, Prashant Modi, in a statement informed presspersons that the lion share of the investment would be arranged from the internal sources and accruals of the entity and that the sale of CBM would be used for drilling more wells and laying transportation pipelines. The company had already spent over Rs. 600 crore in developing the CBM block and in laying pipelines, which now deliver gas up to 30 km from the site. Besides industrial consumers, the company sells gas for automobiles through IOC retail outlets and will produce and sell CBM from the Raniganj field till 2036 by sharing 12.5 per cent of revenue with the government.
As far as the average annual output is concerned, the company is maintaining a 0.11 billion cubic meters for the last three years, but now has decided to increase the number of wells from the current 62 to 300 in the next two years, which would enable the planned jump in gas production from the Raniganj coal field. The government is currently promoting clean fuel progressively and has offered scores of incentives and also made the terms and conditions for such agreements more attractive. In addition to this, the CBM producers can import duty free equipment but have not been exempted from the corporate taxes, he argued.
The Chief Operating Officer, Prashant Modi, in a statement informed presspersons that the lion share of the investment would be arranged from the internal sources and accruals of the entity and that the sale of CBM would be used for drilling more wells and laying transportation pipelines. The company had already spent over Rs. 600 crore in developing the CBM block and in laying pipelines, which now deliver gas up to 30 km from the site. Besides industrial consumers, the company sells gas for automobiles through IOC retail outlets and will produce and sell CBM from the Raniganj field till 2036 by sharing 12.5 per cent of revenue with the government.
As far as the average annual output is concerned, the company is maintaining a 0.11 billion cubic meters for the last three years, but now has decided to increase the number of wells from the current 62 to 300 in the next two years, which would enable the planned jump in gas production from the Raniganj coal field. The government is currently promoting clean fuel progressively and has offered scores of incentives and also made the terms and conditions for such agreements more attractive. In addition to this, the CBM producers can import duty free equipment but have not been exempted from the corporate taxes, he argued.
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