Jindal Steel & Power (JSPL) and Strategic Energy Technology Systems- the Tata group's JV with Sasol of South Africa- has got short listed for the $6-8 billion project to convert coal into liquid petroleum. The project will produce 80,000 barrels crude oil per day (about 4 million tonne a year) by liquefying coal reserves.

An Inter-Ministerial Group (IMG) had examined applications from 22 firms that included companies like RIL, Reliance Infrastructure, SAIL, GAIL, IndianOil, GMR Infrastructure and Vedanta. However, the IMG recommended awarding the coal-to-liquid (CTL) pilot project to the Tata-Sasol JV and JSPL.

RIL's proposal was rejected as it had offered a direct liquefaction process, which was not favoured considering the low reactive content of the coal. GAIL and GMR did not submit agreements with the technology provider, as required for selection, therefore, their proposals were not approved.

Also See:

Coal ministry see red over CTL project in Orissa (11-Nov-08)