Tatas, Sasol yet to decide location of CTL project

Strategic Energy Technology Systems (SETSL), a joint venture of Tatas and South Africa’s Sasol, is yet to decide the location of its proposed Rs 45,000 crore coal-to-liquid (CTL) project in Orissa.

The project would require 3000 acres of land and the promoters have sought the state support for infrastructure, statutory clearances, support for land acquisition, permission for water sourcing among others.

The venture is expected to generate direct and indirect employment opportunities for 35,000 persons. Apart from converting coal to liquid diesel and petroleum, the project will produce chemical downstream products at a later stage.

The JV company was allotted coal block north of Arkhapal Srirampur coal block in Orissa in February 2009, following the recommendation of the Orissa government. Though it can start mining there, the exact location of the CTL plant is yet to be decided. The Union government is reported to be keen on this project which envisages investment of about Rs 45,000 crore.

B Muthuraman, vice-chairman of Tata Steel and Ernst Oberholster, managing director, Sasol Synfuels International Private Ltd today called on the Orissa chief minister Naveen Patnaik and discussed about the CTL project.

Talking to the media after the meeting Muthuraman said, the project intends to convert coal into liquid gas. It is a large project envisaging an investment of about $ 8 billion to $ 9 billion, though the location is yet to be identified.

“ The project is in initial stages and the location is not yet exactly identified”, he said. Asked whether the project will be a part of the proposed Petroleum, Chemicals and Petro-Chemical Investment Region (PCPIR) at Paradeep, Muthuraman said, it is also not yet decided.

Sources said, the project is expected to bring substantial tax revenue over the project period. Apart from empowerment and development of community, it will be instrumental in promotion of downstream activities. The coal block allotted to the JV has about 1 billion tonnes of extractable coal reserves having 37 percent ash content. A steering committee would be formed under the chairmanship of the chief secretary with secretaries in the forest and environment, industry, steel and mines, energy as members to expedite the project. The state industry department will be the nodal department for this project.

“It will not be possible to comment on the project at this stage. The state government would consider the project after the promoters submit the proposal through Combined Application Form (CAF)”, an official associated with the process said.