The Orissa government's mega coal-to-liquid (CTL) project is to be set up in Talcher, Orissa with an investment of about $8 billion (Rs.800 crore) is facing a strong opposition from an inter-ministerial group.

Three huge coal mines, Srirampur block with a capacity of 3,000 mln tpa , Ramachandi block 1,500 mln tpa and Palas Bani block 1,500 mln tpa, have been identified for this project. It has been proposed to utilise one of these mines to extract 30 mt of coal annually through underground operation to feed the 80,000  bpd capacity for the CTL project. 

The ministers are of the view that it will create environmental problems in the area and put pressure on water resources.  The project on completion is likely to release a huge amount of ash and carbon dioxide and it is doubtful if a foolproof technology can be put in place for wholesome carbon sequestration to ensure an acceptable regime of carbon-release. The plant will require a huge amount of water as well.

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