Naveen Jindal-promoted Jindal Steel and Power Ltd (JSPL) will sign a memorandum of understanding (MoU) with the Orissa government for setting up a Coal to Liquid (CTL) project in Orissa.
The company has been alloted the Ramchandi coal block in Talcher, having a coal reserve of more than one billion tonnes for the CTL project.Though the location for the proposed plant hasn’t been finalised yet, the company intends to locate it either in Paradeep or Angul.
“ The project envisaging an investment of Rs 45,000 crore is targeted to be completed in eight years. We hope to sign the MoU with the Orissa government in the next few months”, Naveen Jindal, vice-chairman and the managing director, JSPL said.
Talking to the media after meeting the chief minister Naveen Patnaik today, Jindal said, the project would bring huge benefit for the state as it will generate 20,000 direct and indirect employment. About 2000 acres of land would be required for the project. Sources said, the proposed CTL project by JSPL will have a capacity to produce 80,000 barrels of liquid products per day which included transport diesel, naphtha, gasoline and wax. It has entered into technical tie up with Lurgi (South Africa).
The company will convert coal into gas using the ‘fixed bed dry bottom coal gasification process’. On the company’s existing steel project at Angul, he said, the project is on schedule and the power plant (6x 135 Mw) would be commissioned by September this year.While the coal gasification and DRI would be commissioned by end of 2011, steel manufacturing would start after 2012.The company has already invested Rs 4000 crore on the steel project.