Electrosteel Castings has entered into a joint venture agreement (JV) with Dart Energy for the purpose of degassing its captive Parbatpur coal mine located in the Jharia basin of the Indian state of Jharkhand.

Degassing of the mine is a safety requirement for conducting mining operations.

The JV will extract methane incidental to coal mining from the 8.8 square kilometre Parbatpur coal mining lease area of Electrosteel.

Electrosteel will own a 70% equity stake in the JV, while Dart Energy will hold the remaining stake.

The company said it intends to make this JV self sustainable by realizing benefits of the economy benefits of the methane and that include the eligible clean development mechanism (carbon credits) benefits.

Dart Energy is a degassing company headquartered in Singapore and has operations in eight countries.