Oil India Limited signed the Revenue Sharing Contract (RSC) for Special Coal Bed Methane (CBM) Block SR-ONHP-(CBM)-2026/1 on October 15, 2026. The signing marks a strategic return to CBM exploration for the state-owned energy major.

The block is located in the Singrauli Coalfield region and covers an area of 272.14 sq km. Geological assessments indicate promising prospects, with expected coal seam depths ranging from 600 to 800 metres and an average seam thickness of approximately 40 metres.

Signing ceremony details

The formal signing ceremony was attended by Hardeep Singh Puri, Minister of Petroleum and Natural Gas; Neeraj Mittal, Secretary, Ministry of Petroleum and Natural Gas; and V. Ponnuraj, Director General, Directorate General of Hydrocarbons (DGH). Oil India was represented by Trailukya Borgohain, Director (Operation), along with his team.

Strategic significance

This development underscores Oil India's commitment to unlocking India's unconventional hydrocarbon potential. The company described the milestone as a key step in strengthening national energy security through diversification.

The filing was submitted to stock exchanges on October 18, 2026, pursuant to Regulation 30 of the SEBI (LODR) Regulations, 2015.

Oil India Limited announced that its wholly owned subsidiary, OIL Green Energy Limited (OGEL), has incorporated a joint venture company named HIND OIL BIOFUELS PRIVATE LIMITED. The entity was registered in India on October 13, 2026, marking a strategic expansion into the clean and alternate energy sector.

The new venture focuses on the production of Compressed Biogas (CBG) and by-products from Municipal Solid Wastes. It will also engage in the generation of energy from wastes and the production of other biofuels. This move aligns with broader efforts to diversify into renewable energy segments through specialized subsidiaries.

Regulatory approvals and structure

The formation of the joint venture received approval from the Ministry of Petroleum and Natural Gas (MOP&NG) via letter No Expl-12027(11)/43/2024-EXPL-II-PNG (E-51463) dated June 11, 2025. This approval was granted with due concurrence from the Department of Investment and Public Asset Management (DIPAM). The incorporation was disclosed under Regulation 30 of the SEBI Listing Obligations & Disclosure Requirements (LODR) Regulations, 2015.

Financial details of the venture

The initial authorized share capital of HIND OIL BIOFUELS PRIVATE LIMITED is ₹1.00 crore, divided into 10 lakh equity shares. OGEL has subscribed to ₹5.00 lakh worth of shares, representing 50,000 equity shares at a face value of ₹10 each. This subscription establishes OGEL’s 50% shareholding in the incorporated entity.

Strategic implications

The establishment of this joint venture highlights Oil India’s continued push into green energy verticals through its dedicated subsidiary, OGEL. By leveraging municipal solid waste for CBG production, the company aims to create value from waste management while contributing to national renewable energy targets. The cash consideration method used for subscription indicates a straightforward capital infusion without complex share swaps.