Shale gas and oil are found trapped within the shale sedimentary formations, while CBM is gas extracted from coal beds.
In October, Sudhir Mathur, CEO, Cairn Oil & Gas under Vedanta had said that his company will initiate shale exploration in the month of December. "The government's continuing transformational policies for this sector will go a long way in attracting investments. It will, therefore, boost India’s energy security and reduce our dependence on imports," Modi added.
Based on the new government policy, exploration of unconventional hydrocarbon can be carried out under the existing Production Sharing Contracts (PSCs), CBM contracts and nomination fields. The uniform licensing plan is in line with the new Hydrocarbon Exploration and Licensing Policy (HELP) and Discovered Small Field (DSF) policies of the government.
Another CBM player Essar Oil & Gas Exploration and Production too had said that it is planning to invest about Rs 70 billion for developing shale gas potential in its existing coal-bed methane block at Raniganj. According to 2015 estimates if Schlumberger, India has shale gas and oil resources of 300 to 2,100 trillion cubic feet.