Essar Oil Ltd is planning to develop production wells in Raniganj CBM Block (RG(E)-CBM-2001/1) in West Bengal. Essar Oil ltd & Govt. of India signed a contract for exploration and production of coal bed methane (CBM) from block RG (East) – CBM-2001/1 on 26th July, 2002. The project cost is estimated at Rs. 28660 million. Total estimated production of CBM from the proposed project is 5 million m3/day. Each well is estimated to generate a peak production of 15,000 m3/day.