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India's first coal-to-liquid (CTL) project proposed in Odisha by Jindal Synfuels Ltd, a subsidiary of Jindal Steel & Power Ltd (JSPL), will have to comply with some fresh conditions imposed by the state government.
The state government has insisted on the original promoters to retain at least 51% equity in the CTL project till three years of start of commercial operations.
"The government has imposed some other conditions. The company needs to achieve financial closure within a year of possession of two-thirds of alloted land. We also have to furnish status on project milestones every six months”, said a senior JSPL executive.
The CTL project that envisages a production capacity of 80,000 barrels of oil per day is coming up at Durgapur in Angul district. It is estimated to cost Rs 60,000 crore.
The draft MoU to be signed with JSPL is ready. 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. The company has to submit milestones to be achieved in three years and in six years to the industries department.
"The MoU is expected to be finalised soon after the additional conditions on the project are incorporated”, said an official source.
The CTL project needs 4,000 acres of land. 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 Odisha Ltd (Ipicol), securing prospecting license for Ramchandi coal block allocated for the project, exploration of the coal block and commencement of land acquisition activities.
Other activities to be taken up include submission of detailed feasibility report for water management plan, preparation of environment impact assessment (EIA) as well as socio-economic study for the CTL project and coal mine, sampling and testing of coal and commencement of rehabilitation & resettlement (R&R) activities.
The draft MoU also stipulates activities to be taken up from the fourth to sixth year- continuation of land acquisition and R&R for balance land, applying for mining lease for the coal block, securing environment & forest clearances for the CTL project and obtaining consent to establish from the State Pollution Control Board (SPCB).
Since the project is coming up in the critically polluted Angul-Talcher cluster, the SPCB may impose such conditions as necessary to ensure that the environment quality of the area is not adversely affected and the proponent may be required to adopt advanced pollution control technology.
The CTL project needs around 90 cusecs of water which has been alloted from the Mahanadi river. The CTL plant will produce petrol, diesel, kerosene and aviation fuel.
Direct and indirect employment is expected to be generated for 30,000 people through this project.
