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Deep Industries Ltd., which along with partners won seven coalbed methane blocks in India through an auction Monday, plans to raise “substantial funds” to meet its capital expenditure needs, according to its chairman.

Deep Industries needs funds for exploration activities at the coalbed methane blocks it won at Monday’s auction. Coalbed methane allows extraction of methane from coal without affecting the physical properties of coal.

India received a dismal response at the auction of oil, gas and coalbed methane exploration blocks as global oil majors shied away from the process in the wake of lower oil prices, tepid global demand and still scarce credit.

Only 44 of the 80 blocks that went under hammer got any bids. Of the 10 coalbed methane blocks on offer, only eight received bids.

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