Rs 42,000 cr to be invested to produce oil from coal

PNS | Bhubaneswar

Another Rs 42,000 crore would be invested in the State to make oil from coal and German-based technology would be used for this purpose. The plant would be known as Coal to Liquid (CTL) project and be set up by Jindal Steel and Power Limited (JSPL). “Besides Tata, JSPL would also produce oil and other ingredients from the coal,” said Secretary, Steel and Mines Ashok Dalwai.

After briefing about the project to the Chief Minister Naveen Patnaik at the State Secretariat about the proposed project on Monday, JSPL chief Naveen Jindal said the company would rope in German-based company Lurgee to provide the technical support. As per the plan, the project would come up near Durgapur in Angul in an area of 5,550 acre of lands. Out of it, 413 are forest lands, 1677 government lands, 3863 acre private lands. Only 300 families would be rehabilitated.

As per the plan out of the proposed Rs 42,000 crore, Rs 30,000 crore would be utilised in CTL project, Rs 2,000 crore in coal mining washing and Rs 10,000 crore would be utilised for 2,000 mw power plants. The plant would be of immense help to the country because of volatile oil prices in the market and imported oil prices. Nearly 32,000 people would get both direct and indirect employment because of this company.

The project would be completed in nine years. “It is a huge project,” said Naveen Jindal. Meanwhile, the State Government has allotted Ramachandi Coal Block near Talcher. The proposed plant would procure water from Mahanadi.

Besides the CTL project, Jindal also discussed about its ongoing steel project. They have a plan to expand it from the existing 6.5 MTP to 12 MTP. “The captive power plant would start producing power from September,” he said.