New conditions imposed for JSPL's CTL project

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 has insisted that the original promoters must retain at least 51 per cent equity in the CTL project till three years of start of commercial operations.

"Besides, the company needs to achieve financial closure within a year of possession of two-thirds of allotted land. We also have to furnish status on project milestones every six months," said a senior JSPL executive.

The CTL project envisages production of 80,000 barrels of petrol, diesel, kerosene and aviation fuel per day and it is proposed to come up at Durgapur in Angul district at an estimated cost of 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 are incorporated," said an official source.

The 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 licence 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 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 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 allotted from the Mahanadi river. Direct and indirect employment is expected to be generated for 30,000 people through this project.