Jindal Synfuels has requested intervention from the petroleum ministry in securing the requisites for its Coal to Liquid project in Odisha. The Ramchandi Coal Block located in Angul District of Odisha, was allocated to Jindal Steel & Power by the coal ministry in 2009 to set up an 80,000 barrels per day capacity Coal to Liquid (CTL) Project. This is one of the two blocks which have been allocated as promotional Coal blocks for setting-up the CTL Projects in the interest of Energy security of the Nation.
In a letter to the ministry, the company officials stated that the Prospecting-License (PL) for the Ramchandi Coal Block was applied to the Odisha government in September 2010. However, even after two years from submission, the license remains pending. The Officials informed that the application for forest clearance of the CTL Project is pending at the Chief Conservator of Forests, Odisha for issuing terms and conditions of PL to be issued by the State government. Further, they also mentioned that assessment of land and water requirements for the CTL Project is pending with the State agency since October 2011.
The Company officials mentioned in the letter that all the activities related to the progress of the CTL Project are ultimately dependent on the timely extraction of Coal from the Ramchandi Mines. The coal block is regionally explored and detailed exploration is needed, for which PL is required. In view of this, the Company has requested the petroleum ministry for resolving issues at the earliest by taking up the matter with the Odisha government and the Cabinet Committee on Investments.
The CTL project involves gasification of coal to raw syngas, purification of raw syngas, conversion of purified syngas to synthetic crude and finally upgrading the synthetic crude in refining units to get petroleum products. The multiple benefits include substantial tax revenue to Central and State governments, good utilization of abundantly available high ash coal, domestic production of ultra clean transport fuels, saving of precious foreign exchange on crude import, and stimulation of value-added opportunities through downstream industries.