In a CBM recovery operation, methane gas trapped within coal seams is extracted through production wells. Hydraulic fracturing is often used to enhance production by connecting the wellbore to the natural fracture system within the coal seam. The pressure in the natural fracture system is increased due to CO2 injection and the CH4 flows to the production wells. In this process, commonly known as CO2-enhanced coalbed methane (ECBM) recovery, CO2 is stored tightly in the matrix and is not produced unless the injected gas front reaches the production well or, in other words, CO2 breakthrough occurs. A preliminary reservoir simulation was performed to understand the feasibility of CO2 sequestration and ECBM recovery in a coal seam of the Raniganj coalfield, which is an active CBM-producing area in the country. Using GEM, a compositional simulator, the detailed analysis was conducted to recognize the CO2-enhanced coalbed methane (ECBM) process. Within the considered reservoir setting, it was observed that, with CO2 injection, methane recovery could be enhanced by up to 140%. It was also found that permeability ranging within 20 md and 30 md and an injection pressure 600 psi (~4100 kPa) was suitable for better recovery. In the next set of simulation studies, the effect of different drainage areas with same well pattern configuration and different well pattern configurations with the same drainage area were also addressed. To understand the possible scenario, gas (CH4, CO2) rate, cumulative production and injection volumes were assessed. Inclined injector-horizontal producer combination was found to be the preferred configuration.