October 4, 2008
JSPL Inks JV With Group Companies for Coal-to-Oil Project
By Sanjay Dutta
NEW DELHI: Jindal Steel & Power Ltd, part of the $12 billion steel-to-power O P Jindal group led by Naveen Jindal, has floated a joint venture company with three other Jindal group companies to implement its proposed project for synthesising oil and gas from coal. The new venture has been christened Jindal Coal to Liquid Ltd.TOI had in June reported JSPL informing the coal ministry of its interest in setting up a coal-to-liquid project and request for allocation of coal acreage. In a recent letter, the comany has told the ministry it will invest Rs 42,000 crore in the project. It is to be located in Orissa's Angul district where the company is building a steel plant at an investment of Rs 15,000 crore.
JSPL has tied up with Sasol Lurgi, the South African-German venture considered a pioneer in the field, for the project. The project will use coal to synthesise gas which will be used in the steel plant itself. Along with gas, the project will also produce motor fuels, 55-65% of which will be diesel which is in short supply at present as state-run refiners have failed to cope with unforseen spike in demand. The company has projected a capacity of producing 80,000 barrels a day of oil which will be cracked for motor fuels.
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