JSPL may ink MoU for Rs 42K-cr CTL plant next month

Targeting an investment of Rs 1 lakh crore in Orissa over the next one decade, the Naveen Jindal-led Jindal Steel and Power (JSPL) today said the company is likely to sign an MoU with the state for setting up a Rs 42,000-crore coal-to-liquid (CTL) plant next month.

"After completing the official procedures, we will sign an MoU for the CTL project involving an investment of Rs 42,000 crore," JSPL Executive Vice-Chairman and Managing Director Naveen Jindal told reporters after a meeting with Chief Minister Naveen Patnaik here this evening.

A coal-to-liquid project involves extracting fossil oil from coal. Once completed, this is will be first such project in the country.

Stating that he discussed with the chief minister the group's four projects comprising the Rs 52,000-crore steel plant, a thermal power plant involving Rs 6,600 crore, the Rs 42,000-crore CTL plant and an industrial complex envisaging an investment of Rs 500 crore, Jindal said a total of Rs 1,01,100 crore would be invested in Orissa over the next decade.

"We also discussed (with the chief minister) on our proposal of enhancing steel capacity from 6 million tonne per annum (mtpa) to 12.5 mtpa," he said, adding the department of steel and mines is likely to list this project for consideration of the task-force by the end of July.

Jindal said, on completion, "about 80,000 barrel of oil per day will be manufactured from the proposed CTL plant." The project is likely to be listed in next task-force meeting in July itself, he added.

This is the second such proposal for setting up a CTL plant in the state. Earlier, the Tata Group, in collaboration with Sasol of South Africa, had evinced interest in setting up a similar coal-to-liquid plant in the state.

Though the company is yet to identify location for the proposed CTL project, Jindal indicated to set up the unit in Angul district where its steel plant is being built.

JSPL, which had already been alloted a coal block in the state, would complete its proposed CTL petroleum project in eight years, a company executive said, adding about 32,000 would get employment in the project.

Terming its existing 6 mtpa steel unit as a "showcase project", Jindal said the company will use coal gasification technology in steel making, first of its kind in the world.

While many mega industries face difficulties in implementing their MoUs, the JSPL chief said his company got support of the local people in Angul district.

Besides these four mega projects, JSPL is also working on setting up an engineering college and a power training institute, Jindal said adding the company is committed to recruit local youths in its plants.