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Orissa Govt imposes new conditions on JSPL for CTL project

Monday, 03 Jun 2013
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The Orissa Government has imposed new conditions on Jindal Synfuels, a subsidiary of Jindal Steel & Power (JSPL), for its proposed coal-to-liquid (CTL) project.

As per newly imposed conditions, JSPL has to retain at least 51 per cent equity in the CTL project till three years of the start of commercial operations. Besides, the company needs to achieve financial closure within a year of possession of two-thirds of allotted land. It also has to furnish status on project milestones every six months.

A host of milestones have to be achieved within three years from the date of MoU execution-finalisation of land and water assessment by state owned Industrial Promotion & Investment Corporation of Orissa (IPICOL), securing prospecting licence for Ramchandi coal block allocated for the project, exploration of the coal block, and commencement of land acquisition activities.

However, JSPL has a draft MoU which has to be signed with Orissa industries department. It has been decided that the MoU tenure shall be for nine years with a clause that after every three years the project will be reviewed.

Other activities for the project that have to be taken up involve submission of detailed feasibility report for water management plan, preparation of environment impact assessment (EIA) as well as socio-economic study for the project and coal mine, sampling and testing of coal and commencement of rehabilitation & resettlement (R&R) activities.

The unit, estimated to cost Rs 60,000 crore, envisages production of 80,000 barrels of petrol, diesel, kerosene and aviation fuel per day. It will come up at Durgapur in Angul district. The undertaking requires 4,000 acre and around 90 cusecs of water which has been allotted from the Mahanadi river.

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