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)