JSPL has entered into an agreement with South Africa-based Sasol-Lurgi Technology Company and Lurgi AG of Germany for a coal gasification facility at its proposed Rs.1,400 crore six million tpa steel plant in Orissa.

The company is in the process of conducting appraisals for this project, which will be executed in a debt-equity ratio of 1.5:1. The debt could be financed through external commercial borrowings or non-convertible long-term bonds. The equity will be purely thorough internal accruals.

The gasification technology will employ latest Fixed Bed Dry Bottom Type mark IV Gasifier which will produce 3,20,000 normal cubic metres per hour of synthesis gas to further produce 2 million tpa of sponge iron.

The technology will enable the conversion of non-coking coal into synthesis gas that would substitute for natural gas.

Also see:

Orissa signs six MoUs for steel projects (04-Nov-05)